Certainly what you say about the daytraders bringing the stock to a higher level, albeit momentarily, will not happen without the daytraders. But what good does it do, other than to make some people a quick buck and leave others hanging, hurt, at the high. I personally dont like to see people get hurt. I dont think it does the whole business of "trading" any good. I no longer get hurt as I went through my learning process. I take that back. Way back when, I got hurt, on XYBR, before I knew what I was doing. Am still learning but am a long way along the path.
Not only do I think the rash of internet trading tends to create false illusion, but it stamps on the stock's chart forever, the impression that the stock cannot hold its price and makes people a little leary of getting in. I can give you countless examples of stocks which are trading at undervalue prices just because of that kind of action.
That's one subject. Here's the other. I got into XYBR because of its product. I had explored it fully last fall. Had I seen the CEO before? No. I cannot say I was pre-disposed to like him. He could have changed my mind about being long. Certainly other CEO's have. I happened to have been impressed by him. CNBC could have picked up on any of the "toys" that he did bring, but I do not think that was on their agenda anyway. I understand why Faber and Joe might be against this crazy internet spiking and plunging. If I were God, I would disallow shorting.
I spoke to another person tonight who happened to be watching normal television. He was quite excited about the product. He knows virtually nothing about stocks and certainly doesnt own any. I asked him what he thought, what was his impression of the CEO. It was quite favorable. He said he thought the CEO had handled the "challenging" questions well. And, watching some of the posts here, it seems that I was not the only one who liked the guy/was impressed by him. To each his own. I was just throwing in my two cents to help support those who might think the same way. |
