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Also, as mentioned in this post, every dog has its day. If you've followed any of these minority owned banks you'd know that some of them have made some big moves. Look at CARV, from $2-ish to over $40.00 ( I missed the big move but did make some good returns on that one a few years back)
In my experience when a stock is grossly undervalued there's a sense of unbelief: something has got to be wrong, this can't be right, somebody knows something I don't and that's why nobody is buying it, ad infinitum.
I know, because these thoughts have run through my mind on numerous occasions with numerous stocks, esp when I see them cheap and buy them only to watch them get even cheaper.
As humans, we mostly prefer to run in herds. I often say: "nobody wants it until everybody wants it"
I think trading is as much about understanding human psychology and stupidity as it is anything else. Once one gains a rudimentary understanding of FA and TA the next most important thing is having a grasp on how stupid humans are.
As an example I offer the movie Sideways, a brilliant film starring Paul Giamatti who plays Niles.
In the movie Giamatti's most famous line is that "he's not drinking any f*cking merlot"
He refuses to drink merlot because it reminds him of his ex-wife who drank merlot (and he drank it with her)
So, he decides to drink Pinot Noir and goes on and on about it at great length critiquing its characteristics, difficulty in making it balanced, finding the right ones, etc (which one might take as an allegory to finding the right woman)
As a result of the movie Merlot sales crashed and Pinot sales took off. If folks really understood the movie they would have been buying Merlot.
The irony is Miles only gripe with Merlot was that it reminded him of his ex. Even his most cherished bottle of wine was a 1961 Château Cheval Blanc, a merlot/cabernet franc blend.
