Let me tell you what I always see happen with these BB stocks.
First someone comes along and says "Anyone know anything about ZZZZ stock? It is really low in price anyone know why?????"
then a bunch of people come on and ask basic questions "Who is the ir person? CEO, what city. what do they do, "
Rhen answers come in" The ir person is johhny no thumbs, the ceo is Rusty the don, They're in New York, They make widgets"
Then someone comes on and says "I am an authority on widgets. IMOP ZZZZ is positioned to make huge profits in the widget industry. I am surprised this stock is so cheap. It should be at $1. Looks like this one is going to shoot to the moon.I'm selling everything I can to get in this one"
Then the masses flood in, and buy a ton, and the price shoots up. Then the person who has been posting the most becomes the thread guru. Everyone posts nice messages like "We love you thread guru, thanks for all your help and DD" "GO ZZZZ!!!!"
and all is well in BB land.
Then those that got in in the beginning sell. They sell for a lot.
The the price starts to slip (just a bit because of profit taking) and all of a sudden, those that got in late start to get worried..
"what if it's a scam, what if I was lied too, what if I am going to lose all of my money. what if my wife leaves me. what if my dog gets cancer"
They post a few messages like that. the stock drops a little more.
Then our expert jumps in to save the day "No it isn't a scam, this is great I can buy more at huge price reductions. boy am I lucky to be alive when I can get this bargain today"
And the worry worts are calmed for a moment, and a few more buy (Hey they're a bargain) and the price increases a little again, but not quite as high as last time. Then more selling comes.
"OH MY GOD. It's a scam. You, thread GURU you are a liar and a theif. You scammed me. My dog now has a heart condition because of you. Now how will I ever afford to put siding on my trailer"
Panic ensues, and the price tumbles even more. Now the camps start to form there are the longs (Damm I didn't get out fast enough and now the price is so low I can't sell, because I'll lose too much) and the Bashers (I got out fast enough but took a loss , and now I'm pissed, and it's everyones fault except mine)
These two groups go to war. The price?? it keeps dropping. Why? because of the company???Are you kidding, most havn't even looked into the company. They have no idea whether it is good or bad. They just bought because they thought they were going o make a quick buck.
Then people start to do some REAL DD. They actually call the company. They actually LOOK into the industry. They actually EXAMINE the fundamentals.
At this point the situation is a split. Sometimes it turns out the company is a good one, and it will just take some time for the price t o appreciate, and serious investors to come in.
Other times it is a dud.
Did I invent this, is it fiction, did Oscar the Grouch tell this story from the Can?
Why not go back in threadland time, on any thread (ANY THREAD) and you can see this happen.
why not go back in time to a thread called 50 cents or under, where I posted back in march about prwt. I asked outloud on the thread why I would buy into a bankrupt water company about to merge with a video phone company? No one answered. no one. So I phoned the Video phone people to get more info. I phoned 14 times and left messages, because the answering machine message said they would call me back. They never did. I could find no information On the company with the video phone.
So I didn't feel comfortable buying in.
So then 2 months later, a new merger is announced. The above scenario took place. Did I buy in. NO. Why? I have rules I live by, and this situation said to me. It may run for a while, but it probably will surge up, and then right back down. I would rather miss a potential run, than end up holding the bag from a pump and dump.
So I could have turned $10,000 into $200,000. Would have loved to, who wouldn't. But then again, I could have kissed $10,000 away.
So what is the purpose of this , already too long message?
This. Anyone who is serious about buying any stock, first comes to SI, to see what is being said about the stock. Then they do their research in the REAL world.
If a thread averages 200 posts a day (like this one) who has time to look at each post, especially whn most of them are either "Go ZZZZ" "whoppeee" "yay ZZZZ" "Oh my god, I've been Scammed" "shut up you're just a basher" etc etc.
If you restricted your posts to simple information. Posts like here is the total outstanding , the float, the market cap, projected revenues, why the company feels it can get those revenues, what their contact info is, who the IR, PR firm is, who the competition is. etc.
Then, it would be so much easier to learn and earn with a stock.
Think I'm off base? I don't. I can direct you to a number of threads that have the same things going on at various levels of the game. Some of us just watch and wait. Maybe some of you should too. |
