Penny, the reason that I hold at 50 cents is that I don't consider ETPI a trading stock. I bought it with money that I might otherwise have thrown away on options that expire. If ETPI fades away, it's no biggie; options do that too. On the other hand, if ETPI gets listed somewhere, catches fire, and goes into the $3 - 5 range, my return is stellar indeed, even if I have to wait another year or two for it. As far as portfolio cash management is concerned, the ETPI money is 'out of sight, out of mind.'
But the ETPI message board is very much in sight for me. I don't object to traders taking their profits in regular cycles. I object only to overoptimistic postings that the stock will skyrocket when there's no rational basis behind it. ETPI goes up and down in cycles. This is the real world. Let's make believe we live in it.
Now when ETPI does turn a profit of 5 cents a share or when ETPI gets an AMEX listing or when Disney buys a 15% stake in the company, that's damned exciting. We can cheer for ETPI because we have something solid to base it on.
What we see on this board, however, is frequently vastly unrelated to reality. It goes something like this: "I think ETPI is going report a 10 cent profit this quarter. That means the price will move quickly to $2 a share. It's gonna take off. This will be your last chance to buy it cheap. Buy it NOW. Buy Buy Buy."
I don't think I have to elaborate on what I think of this message. I don't begrudge any trader who sells at 50 cent his profit. He's part of the market and we need to remember and acknowledge that this is how the system works. What moves ETPI stock is not the optimistic message. It's market psychology of supply and demand, fear and greed. In this context, I discount most messages alleging Market Maker conspiracy. MM's are in business to make money. They compete against each other for that profit. Theories that they collude silently with each other to destroy the average investor arise from the paranoia we all tend to feel when the market is moving against us. This too is part of market psychology. Good traders base their decisions on the old sayings, 'The trend is your friend' and 'Don't fight the tape."
So, Penny, I don't expect a trader to hold at 50 cents or any other price. I expect a trader to buy or sell so that he can make money. I happen not to be a trader, though for stocks that happen to be a more significant part of my portfolio, I have no problem in selling short-term positions to capture a profit that I think has run up ahead of itself or to minimize a loss.
What I do expect is that ETPI management will execute its plans to grow ETPI in a way that it will ultimately earn 5 cents a share. The extent to which management succeeds or fails in its execution is, I think, a very valid topic for discussion on this board. |
