I'm not a firm believer in technical analysis, but fundamentally this company should have bit the big one a while ago.
It's another of what I call "lottery ticket" stocks. The lottery jackpot is, say, $5 million. A lottery ticket costs $1. The chances of winning the jackpot is, say, 1 in 100,000,000. In statistical terms, the expected return of that $1 ticket is $0.05. You don't have to be a rocket scientist to realize that the person who buys that $1 lottery ticket is not the sharpest knife in the drawer.
In the case of CUST, not only have people been buying that $1 lottery ticket, but they have been bidding that $1 lottery ticket up to even more ridiculous prices -- $10, $15, or $20. Of course, there is a chance -- 1 in 100,000,000 -- that the $15 lottery ticket will hit the jackpot and win $5 million, but your chances of being hit by a meteorite while taking a shower and singing "The Star Spangled Banner" is probably higher.
CUST is going to bite the big hairy one. When it happens, those holding CUST stock should be no more surprised than the mass majority of lottery ticket holders the night the winning numbers are announced. |
