Why would anyone invest in COII?
Having been there, done that, I will express my opinion as to why so many may be unwittingly going down with the ship as far as COII goes.
I too was once heavily invested in a company and experienced the temporary euphoria that went along with what seemed a never ending increase in shareholder value where at the highest point I was over a quarter million dollars to the profit. It seemed too good to be true, plus with all that was happening with the company I was sure I would be soon realizing greater profits where I would wisely cash in and take profits.
Collectively as a group of longs, some with quite sizable investments, we became privy to the early leakage of forthcoming news which mysteriously was available to a select few investors who got in early and very attractive prices. We never questioned the how and why this was occurring. I mean, why would we? We were making money on our wise investment. The more information they spewed to the followers, the greater their support became as most of the investors had very little investment skills and grew to relying on their feed of information from the company, which again and again proved to be "correct". I'll be darned if every time the chat board leaders said good news was coming and we had better buy now before the good news came out, well you know it, good news came out shortly and sure enough we increased our fortunes. It was quite Pavlovian to say the least.
Heck, at that time a lot of us didn't even know what a private placement was, what the float meant, what earnings even had to do with shareholder value, and for that matter many didn't even know what a PE ratio was. Some of us didn't even know what the significance of a market cap was, and how to determine a reasonable market cap for a company. We didn't question or make any association with the continuous leakage of news before the actual release, or paid any attention to the fact that the company was more interested in selling stock than investing in their product. We felt that they were doing a lot to invest in their product, we thought they were doing the "research", they were advertising, having meetings with all the right people, we thought everything was just dandy. We didn't see any red flags. We only saw what we wanted to see. We only saw what we were looking for. ...more profits.
Many of the investors of bulletin board stocks have very little investment skills other than investing on stock tips from friends and what they learn from the various chat boards. When they invest in a BB stock and have a profit, it just reinforces that they are right. Their investment decision was wise and as the stock continues its ascent it just reinforces that they are so very very right.
Well, you can probably guess what happened to me. My quarter of a million dollars of profit one day became $200K, then a little later $150K. I was led to believe that this was just a fluke and the investor relations where I had grown to rely on and trust for my information as well as the PR firm that I had become accustomed to trusting, told me it was just temporary, and it was mainly due to the shorts. That the shorts were the blame. Those guys that don't have a life and sit behind a terminal 23 hours a day. This was spread all over the chat boards on this particular company and we believed it, hook , line and sinker.
I was lucky, I was able to get out with some profit, which paled in comparison to the quarter million I would have had, if I had only pulled the trigger when I was up as much as it was. Every time the stock plummeted, it came back up, and then plummeted down again, only to get back up a little more. I really believed we were going to pull off a "Rocky" and would surely become victorious in the end. I mean, why wouldn't we, we were the good guys. The newcomers to the thread were from some alien species and obviously had no clue as to the merits of the company. No way could they be right and the good guys wrong. I was lucky, I came out with some profit.
Everyone told me, don't fall in love with a stock. It's so funny, I didn't even know what that meant at the time.
Eventually, the threads for that stock became a ghost town when it was all over. With so many investment options available, you might wonder why some investors hang on in the face of impending doom? My guess is what happened to me is what is happening to them.
At that time I thought DD consisted of getting your information from the company, believing their company press releases, reading the chat boards, and looking at the beautiful chart of "my company". Anyone who differed in opinion from our chat board leaders was obviously a villain. No one questioned opposing opinion initially until slowly the ranks began to break down. Why were some of the long and true turning on us? How could they desert the group? One by one, slowly at first they began to desert, until finally almost everyone had gone. The funny thing is everyone I knew that had trading skills made large amounts of money, as they recognized what was going on and could exploit the upward momentum while it lasted. I still remember almost once a month, sometimes more the two individuals that I knew who lost money because they got in near the top and lost money. One was an elderly lady who refused to sell even after I told her I was selling out. She responded, she had lost money but these stocks often come back. She worked behind the desk at a fitness club. As the stock continued going down, she would tell me, she was still holding. I eventually stopped going to the club, even though I was one of the founders and had a complimentary membership.
My other friend I knew from college. He also refused to sell even after i told him that I was "out". I remained in touch with him for over 25 years. Eventually, we fell out of touch and I haven't heard from him for years now and I suspect I won't be hearing from him again.
Anyway, that is what I feel is the case in point with COII.
We only find what we are looking for. I doubt most of these investors understand the implications of what is going on at the moment and would recognize a red flag if they saw one.
I believe the investors have the hope that a company with unproven technology will some day reap huge profits in shareholder value. That this FDA 5 day module ploy will supposedly signify a increasing perceived value for COII, despite that there are many who believe that it actually represents a ploy to create the perception of invreasing value. There are many who believe this "approval process" has no significance whatsoever. Never had, never will.
Because the investors only see what they want to see and find only what they are looking for, they totally disregard the expert opinions of such world famous physicians in the area of breast imaging such as Dr. Edward Sickles, professor of radiology at the University of California at San Francisco. After investigating on my own about this Dr. Sickles, I can assure anyone who has not done his own DD, this is not an opinion that I would take lightly. If you would check into who's who in the field of breast imaging, he is regarded as a world leader in his field and has published quite extenslively in this field, and has written a plethora of medical publications in the major radiology journals as well as medical textbooks currently in use by radiologists all over the world. I believe many investors will choose to believe the opinion of the chat boards over his alleged expert opinion.
I doubt they will heed the warning of Dr. Yuri Parisky, an associate professor of radiology at the USC/Norris Cancer Center in Los Angeles who one would think as a paid consultant to COII would possibly be inclined to review the technology in a more favorable light.
I doubt that they will be bothered by the dubious backgrounds of some of the major players involved with COII or the alleged history of prior investment schemes.
We are each the captain of our own ship and in the end we are all responsible for our own investment decisions. In the end we each stand alone. In the end, we have only ourselves to blame or take credit for our losses or profits.
Good luck to everyone and have a happy 4th of July. |
