GNET Down -8% Nas. down -2.1%
I don't remember who I said this to a few months ago, but I asked them if they would still be happy if the stock fell back to $45 which would be an increased probability should it fail the important 200 day and relative strength get torn all to hell. In effect taking a 60% loss on paper from the top. They said sure, and would "back up the truck." Well, to that person if they are still here, care to try for $30? Then just to get back to $60 would take a 100% gain.
I think a lot of people are learning hard lessons these days (not just in this) that many good companies with good internals do not automatically translate into great stocks, while the opposite can be true like this past winter. It is common for investors to continually try to justify their positions and the company they love one way or another. The market is cold and calculating however, and will make the important judgments. As an investor, I care about the stock price very much, as I am not a Methuselah and can't wait based on hope and wishful thinking for years possibly that everyone is bound to "catch on", like the home builder situation I described earlier and I got caught in for a couple of years. Fundamentals could not be better, earnings and revenue growth up 50% for several quarters in a row, yet nothing to show for it for the small investors. Prices flat for 10 years and more while every quarter the earnings come out great. No one would have believed it 10 years ago or even 3. A clear case of disinterest and lack of exposure much of it self imposed, and this totally is reminiscent of that.
Some may like thinking that perhaps all sorts of good things are happening behind the scenes. If so, great, as long as it translates into something of substance this year. However, without any proof of that, it is simply unknowable and just guessing. There is no evidence of this whatsoever, and the silent treatment has only served to help the stock get smashed at the worst possible time. The market recognizes namby pamby efforts and results (or lack of), no matter what spin is placed on them. Most current and potential investors want some kind of results that they can see and hear about, not some intangible speculating and guessing that the best is yet to come. We should not have to feel like staggering through the Sahara stretching and grasping for the next oasis to pull us through to promised land only to find out that it was already taken at the end. It is not necessary to keep everything bottled up if that is indeed the case. If it is not, then nothing important is going on, and the stock is priced correctly. We know past results are no guarantee of future, and without anything current or immediately pending to show, you would have to be way ahead to remain a devout "faithful" unlike all of those disenchanted ones that have sold or cannot without losing just about all. |
