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I've been scanning BB threads for the past couple days and, not surprisingly, almost all have the same theme as Famh. Financials promised months ago still haven't materialized, management's code of silence, impending SEC investigations, verification of any concrete facts almost impossible to ascertain, stock price pummeled. Next month means tax selling so I wouldn't expect anything productive from the BB market now until the beginning of next year. Ironically, nows the time to start picking up shares of these dogs. Nobody wants them, the companies all suck and they can't give the shares away. The pennies seem to trade in a seasonable pattern. January through late spring is when you hear all the "noise" and most of these stocks enjoy healthy climbs. After that look for that steady decline with lots of false promises to keep the rally going but eventually reality sets in and the stock drifts to pennies. But then Christmas comes around, extra cash, bonus money to throw at the market and lo and behold, cash drifts to the dregs of the market and Voila!! Pennies popping all over the place. Some of these stocks are battered 75-90%, Famh included. Most of these stocks lack fundamentals, but, the pennies are a different animal. The "story" is what drives these stocks. Everybody here fell in love with the Famh novel. It sounded so nice, didn't it? But we were fools. These stocks are meant to be traded, plain and simple. Not specifically day traded, but traded. I think for the next few months you can pick up most of these companies at a bargain, wait for the spring pop and start the process all over again. Sounds too easy. LOL |
