*Slightly Off-Color* Do not read if you are easily offended....
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Mitch's Philosophy on Market Psycology, particularly as it applies to DDIM
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I believe that a company promoting a stock is much like a person placing an ad in the personal/romance section of the paper.
Sometimes the ads (PR releases, Quarterly reports) do not accurately reflect the end product that you are trying to sell.
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An almost-too-personal example....
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A few years ago, when I was living in Michigan, I placed an ad in the personals section. Before too long, I was getting calls left and right from women who were just dying to date me.
I couldn't beat them off with a stick. To use DDIM terms, I was post-split 31-32.
However, I never got a second date. Sometimes, I couldn't even make it through the first date.
Not because I didn't like the women, most of them were wonderful, but they didn't want to go out with me after we met.
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Finally, I cornered one of the ladies and asked her what the problem was. Why the intense interest, then a desire to get away?
She told me that she wanted to go out with me, because in my ad, it said I could "lick my eyebrows with my tongue".
She also said that she was repelled when she found out it was because of my grotesquely overgrown eyebrows.
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How does this relate to DDIM?
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Well, I think DDIM was/is a great story stock. But even the insiders are selling in droves. The only people buying this thing are people who don't know about the overgrown eyebrows.
Even when you have Paul Revere types like Jalali shouting it to the world. You'll still have some naives thinking, hey, this sounds like a great guy (stock). There were only so many girls in Michigan, and there are only so many investors out there.
Soon, everybody will see the lemon for what it is, and Larry Martin will be posting his own personal ads saying:
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SWM. $50 million annual run rate. Profitable business in Somalia, Uraguay, and most 3rd world nations. Prefer SWM or SWF. Naive. Unable to read balance sheet.
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~Mitch~ |
