See, here's the thing. A POS stock trading ultra low with no current fundamentals is viewed like a lottery ticket. It probably won't be a winner, but if it IS a winner, it is a big winner. So people will throw small change after the long shot because it is so cheap. The previous 100MPG example I gave or even more ridiculous, the cancer vaccine, (cancer vaccine? the oxymoron of all time). People want to believe, you know? Or more importantly, they think others want to believe. So they hop on board.
On the other hand, a more sure thing might get spurned because, while it is of higher quality, the upside return is modest and the downside can be significant. Ask yourself this: A few weeks ago, when DELL was at 110 and TNRG was at .012, which one was the scariest buy?
TG
See what I mean? |
