Now tell me what the difference is between ML saying not a buy an a company that is a BB saying it is a buy. None as far as I am concerned.
I am certainly not an apologist for the street sell side. During the bubble, investors and long side traders anointed the sell side analysts without considering the motivation, and certainly some made out well with this compromise of logic.
But how many companies do anything but promote themselves? BB, Big cap, all the same, no one is going to actively dissuade, if they can help it, investors from piling in.
So no, BB issues aren't that much different in terms of promotion. The bigger companies have the sell side and the public pumping them up. The small ones need to make due with their efforts, bottom tier firms, anonymous pumpers, irresponsible fund managers on CNBC, etc. Its all the same game really, but the small ones aren't under anywhere near the scrutiny. Many BB companies are development stage affairs with questionable durability and the hype machines need to work even harder to ensure that the cheap paper is passed off to appropriate victims (i.e. anyone but the promoters and insiders).
Yes, its a cynical view, but its the facts of the matter.
The entire system, BB, mid cap, small cap, big cap, bloated cap, is stacked against the general public, in broad terms, anyways.
The big houses where telling everyone to buy the Techs. They where telling everyone to buy Amazon. Please explain the difference.
Of course there is no fundamental difference, except that while the larger companies were in well defined up trends, the risk in playing them - for a trade, not an investment - was less. Mostly due to liquidity and broader public participation.
Tell me where the difference is between Amazon an ECNC. They both are loosing money. One is on the NASDQ the other is on the BB. Tell me why that Amazon shouldn't be on the BB?
One trades more than 5 million shares a day on an annual basis. That is the difference - at least for a technical trader. Who wants to be trading a stock that on some days has only four or five other traders working it? Yuk!
I have nothing against fundamental investors, gee, some of my good friends put their money to work on nothing but fundamentals. If you are a fundamentalist first, using technical analysis to assist you in entry and exit - all the more power to you.
But this is, after all, a beginners technical analysis thread. There is no way in the world you can convince me that a beginner should put their money to work on stocks that often trade a few thousand shares a day. Make a mistake, get killed when you want out.
When you make a mistake on AMZN and lean on your 'Exit' button, at least you know you'll get hit within a teeny or two.
I'll grant you this, there will be good companies worthy of investment or trading on all exchanges. Perhaps the fundamental / technical trader that combines both approaches can do better as a result.
But I am not convinced of that myself.
Cheers
Mike |
