TO ALL: . . .How would you like it? . . .
The "prediction" of a tanking market has now tanked the market. . .primarily the internets. . . But the question is, who has the most to gain by 'causing' such a tanking? The answer. . .Follow the money.
The whole idea of a shakeout, whether by a single MM on one stock or when applied to the whole market, is to SHAKE OUT shares from the 'weak' hands and PLACE them INto the hands of the 'strong.' Individual investors are typically the weak and the massive mutual funds are the strong.
WE individual investors, focused heavily on high-tech and internet stocks, demonstrated which companies WE thought SHOULD be bid up. Some, like ATHM, CMGI, AOL and YHOO, we continued to pour money in with no regard for true valuation. And by doing so, we "cast our vote" for the true winners of the internet.
And as for the more volatile and agressive rocket stocks, we knew that SIEB and NSOL could see fantastic prices. And we cast our vote for EBAY and AMZN and ONSL for enormous E-commerce winners. And by doing so, WE became the new analysts. . .
No fund manager could justify a 250 dollar per share valuation of AMZN to his boss, let alone a fund prospectus. However, a 120 dollar valuation is FAR easier to justify. Same with ATHM, EBAY and others. These fund managers MUST justify the stocks they select, before they can start their buying.
On and on throughout the internet and related sectors, virtually EVERY stock has been tested as to its valuation. . . by individual investors. Some stocks rose to the occassion, and others did not. And the fund managers have taken careful note of the winners and losers. . . .did you?
It was easy to sell SIEB at 12 when you knew it would fall back to 8. But once you saw it go to 70, you are more willing to pay 20, perhaps a closer valuation. Yup, we gave them the indication of which internet stocks would be winners and which would move the quickest and which were the losers. Prior to our selecting these winners, my guess is that the average fund manager would have predicted miserably. None of the old rules apply to this new market.
But now that they know WHAT to buy, how do they buy them cheaply?
Strategy: Short the winners and if it pulls down the entire market, so be it. . . in fact, "we need some puppets to announce a major market correction."
The analysts announce and the market tanks. The weak sell and the strong buy. The rich get richer and the individual investors get discouraged.
But it doesn't have to end this way. We built this city. We see through the market. And individual internet investors were the ones that peered down the road. . . and saw it was good. We KNOW which stocks were winners. And we too, can buy those. We can make our OWN predictions of where such winning stocks will be in 6 months.
WE are the new breed of stock analysts.
To my thread: Let me hear your 6 month and 12 month predictions for the following group of stocks. Let YOUR voice be heard. We individual investors need to be the FIRST to buy the winners. . . and sell into the buying caused when another BOZO analyst predicts DOW 12,000 or something like that.
What is your 6 month and 12 month prediction on these 20 stocks?
YHOO ATHM AMZN EBAY SEEK BCST DCLK CPQ CMGI AOL NSOL BRCM GCTY RNWK VRSN T CPQ TMCS BRCM EXDS
. . . And the individual investors throw another brick at the Wall Street analysts.
Rande Is |
