Hello again, Bob,
Okay... I'll take the pop quiz...
1. Why do a lot of people prefer really cheap stocks?
Because the human thought process convinces them that there is more value (or potential value) in owning 10K shares of a sh*t stock that sells at 10 cents a share, as opposed to owning only 100 shares of a different stock that goes for $10 a share. My favorite way of destroying this concept is to ask whether they'd rather own one luxury vehicle valued at $100,000 or 1000 clunkers valued at $100 apiece. How do they respond? (Hint - lot's of whining that it's an unfair comparison...)
2. Do you think these people, as a result of their market activities, have much discretionary income?
Actually, I remember seeing some statistics somewhere regarding the demographics of who buys Pink Sheets stocks, NASDAQ, NYSE, OTCBB, etc... If I remember correctly, the NYSE had the highest average age, highest average income, highest average education level, etc. among its customers. NASDAQ had the lowest average ages, and was not too far removed in average income levels and average education levels from the NYSE. The Pinks and the OTCBB brought up the rear, with markedly lower education levels and lower income levels, but just an average age spread (meaning that age was not a significant factor). Discretionary income, as I recall, was not a measured demographic, but I suspect that the OTCBB and the Pinks would win the dubious title for least discretionary income... I think that the Toronto Exchange was also included, but I can't recall their data. This survey was some time ago now, maybe around 1997 or so???
3. Do you think these people have so much of it that they can afford to spend $80 of it on a site that already lets them post for free, but enables some extra features if they subscribe?
I would doubt it... Their $80 would more likely be spent on 8000 shares of a penny stock, or 20 six-packs of their favorite cheap beer... <g>
4. If not them, then who might have this kind of discretionary income and willingness to spend it where they get some benefit?
Good question... No idea... To borrow from another area of human psychology, why buy the cow when milk is free?
perhaps you can guess what percentage of our income comes from advertising, which comes from page views (more specifically, the occasional clicks that come from page views from the non-subscribers who see the ads).
My guess, and it's strictly a guess is less than 2%. That guesstimate is based upon knowing how little income major Internet sites (such as Yahoo!) now garner from advertising after the tech bubble burst...
KJC
PS - Grade me... How'd I do? |
