Thanks for the comments Carl. I try to separate my emotions from my investing, although it has been very difficult to do. When I look back over the last 10 years, when I invested and emotions played a role, I generally lost money. When emotions were controlled and I looked at the situation from a logical and analytical perspective, taking into account all recent activities and information, and based investment decisions on that, I generally made money.
Again, I have always remained long on KRY. However, lets control our emotions and simply look at the chart. Does this action seem like it has happened before? Every stock which has had a major runup has a major correction. Look at CRN, WTC, KRY, any number of speculative issues. Boring, solid growth stocks with real earnings like Shaw Cable (SCL.b) and ATI Technologies (ATY) show gradual, sustained growth.
KRY is not in that group. Hence, is will rise and fall, for whatever reason, caused by various external factors.
Whether Asensio is correct or not is, unfortunately, irrelevant. The fact is that the media affects the minds and opinions of the viewers. The INFORMATION may not be true.... but the fact is that this information WILL affect investment decisions, because it sways opinions. Therefore, the negative publicity will damage the stock. In time, it will recover. The low will represent a new buying opportunity. The new 52 week highs were a selling opportunity.
For example, during the war in Yugoslavia, the Serbs were described as aggressors and occupiers. The FACT that they have lived in parts of Eastern Yugoslavia (Croatia) for over 500 years was irrelevant - the media painted them in a certain light, so the general public consumed the information as uncontested truth. No one should confuse the information received from TV or the Newspaper as the 'truth'. It is simply that - information: maybe good or bad.
We need to be smarter than those trying to manipulate us. I feel that Asensio is manipulating the market. Even if a lawsuit is successful, he doesn't care. In the BIG picture, if he makes several HUNDRED million shorting the stock, he doesn't care about a lawsuit that may cost him a few million, 5 years from now. These cases will take YEARS to resolve. By then, people will forget. It is done in business, unfortunately, on a regular basis.
KRY wil recover, but I am glad I sold 70% of my position at $10.60 and $11.40 I will buy back in, but not yet. I feel that it will fall further. I will monitor the chart, and not this thread, for the time that I feel is right to get back in. Charts are unemotional... but people are. Especially when money is involved.
mc |
