Jon,
re your 3909, I am very surprised that you said, "With BB stocks, that's generally all you get is potential." Jon, it doesn't matter whether I am surprised or not.
Let me tell you my philosophy though. I believe that everything in which you or I invest should have a positive return. Everything in which I invest has potential. Everything. This would include a BB stock. Now, I don't think anyone would invest in anything if all there was available was potential. To digress just a second to make a point here.
There is potential energy and there is kinetic energy. To use the example of a car first not in motion and then in motion we can illustrate. A car standing still has potential energy. But it is not going anywhere. A car traveling at 60 MPH has kinetic energy. It is doing something. If it comes to an abrupt halt, the car is mangled and the driver is usually hurt.
Now then, I want to REALIZE a profit. I don't buy anything such to obtain POTENTIAL. You made the statement that all you get with BB stocks is POTENTIAL. That is not the reason that I invest. I want to realize a profit, but can't unless the stock moves up. Stocks move up because there are fundamentals driving the upward movement. If the only "fundamental" upon which the stock is moving up is a constant stream of press releases, that is purely marketing. Marketing is only a precursor to what really drives a stock up and that is earnings. To expect that new investors will buy into a stock and thus drive the stock price up so the older investors can unload is an example of the so-called "Ponzi" scheme. You know, the bigger fool theory. A steady stream of rehashed, rewarmed press release hype is an example of trying to drive the price of the stock up without basic fundamentals underlying the stock. This does not address the issue of earnings.
Now, do you or I or anyone have any knowledge of audited, reported EARNINGS in our possession? I don't.
When I first started learning about investing, someone told me, "Buy Low, Sell High". They said that if you do that, you will realize a profit. Has that changed with MRPS? Are you saying that all I should expect from a BB stock (like MRPS) is POTENTIAL?
I surely hope not, Jon.
Vic |
