While Warren Buffet is not my hero, he *is* the second richest man in the world (after Bill Gates). He got that way investing his own money. I think he can do whatever he likes.
I certainly agree that it is the responsibility of a company to increase shareholder value. But they do not control the market. Small caps in particular attract a lot of inexperienced, emotional "investors" who don't have a clue how to determine fair value for a company, and jump in and out of stocks on hunches and whims. This tends to make small cap markets inefficient, and provide greater potential for reward. But it also makes them volatile, so you have to be willing to ride the roller-coaster. People who can't stomach a loss of 30-40% should not be in small caps in the first place, IMO.
I want a profit as much as the next guy, but I don't get hysterical if the market does strange things in the short term. I think TCT is doing a great job growing its business, and that is the only way to achieve SUSTAINABLE growth in the stock price. It is not TCT's job to hype the stock for the benefit of speculators who want to make a quick buck.
And yes, if TCT went to 65 cents as Jim Wood hypothesized, you can bet I'd be loading up on shares! If there was no negative fundamental change in the company, I'd be buying a company that is growing its top and bottom lines at an incredible rate, at a price of just 4 times earnings! I'd be crazy not to! A few months back I quadrupled my holdings in VLV when it got ridiculously cheap. It has paid off well so far.
Now, if anyone thinks that TCT is intentionally keeping the share price down, that is certainly a different matter. Does anyone know of any specifics where management has acted against the interest of shareholders? Also, anyone heard a reason why they have stopped publishing monthly unit sales figures?
Regards,
Garth. |
