I have to admit these have been a strange few days. I'm long on this stock, but only because I'm too stubborn for my own good and refuse to admit defeat. Something does smell fishy, but the trading the last few days really has me puzzled.
1) The Wired articles were absolutely horrible for NETZ. By all rights the stock should have plummeted. I know, I know, it's just one perspective, it doesn't address financials, it only really concerns the shady background of one individual, blah blah blah, but let's be honest, you couldn't imagine much worst news for NETZ. The run-up was based on what is essentially "non-news" at best, mentioning Doubleclick about ten billion times and announcing 39 million in revenues, which is a meaningless number without anything else to accompany it. But the stock took off like a rocket. So obviously people are watching, and paying attention to news of the company in the media at large. Wired releases four articles concerning NETZ, the basic gist of which is "Buyer beware, this looks like another pump and dump scam." Which brings us to the point where...
2) The stock has been holding steady in the .40 to .50 range for the last two days. Hmm. This doesn't seem to logically follow. I'm not sure I buy into the general paranoia concerning MM's and their insidious, fiendish tactics of shorting vulnerable penny stocks, but I've never seen a better short candidate then NETZ is at the moment. Yet for some reason that isn't happening. It's even more surprising considering that it would take very little downward momentum for the rest of us rats to jump ship. Now the hypesters would have you believe that the "smart" money knows what's up, and is ignoring Wired, and buying in at a bargain, and that explains everything. Get real. You would have to be smoking rock to get in on NETZ at the moment. I'd be willing to wager a chunk of change that the present hypesters on the thread now all bought in at $1+, expecting a ride, and are doing all they can do create a positive spin, and recoup some losses. But, while that might explain how people here can still be positive about NETZ, it doesn't explain who the hell is buying NETZ at the moment.
3) Let's assume that NETZ is a complete and utter scam. Let's assume Otherchap was right all along (well, except for his predictions each day, which were never right) and they acquired the shell for the sole purpose of pumping up the price and dumping their shares. Should we assume then that they dumped at the recent all-time high? I'm far from an expert, but my gut feeling tells me we would be much, much lower right now price-wise if that was true. The day-traders had a field day with NETZ on those high volume days, and the pullback could easily be attributed to profit-taking. Have the ratz at NETZ been steadily dumping all this time in order not to send off warning signals? Perhaps, but again, I feel we would have fallen much lower if this were the case. So that leaves us with a pump and dump which hasn't been dumped yet. Even if the sneaky rat bastards dumped all their shares at the current price levels, they would be up substantially from what NETZ was a few weeks ago. Considering the Wired exposes which just came out, it would make logical sense that they would have dumped the shares as quickly as possible, since the gig was up. But again (and this completely just my opinion) it appears that they haven't dumped yet.
4) One conclusion would be that everything is actually, contrary to Wired, on the up and up, and this is a legitimate business. Another conclusion would be that they're waiting to dump, despite all the negative press floating around. Why would they wait? Might it be because they feel confident enough that the release of news (like oh say, the hallowed financials) in the very near future will cause an upswing? Does that make buying in at the current levels, despite all the bad signs, a win-win situation?
Sorry this is so long, but I'm trying to make my NETZ experience at least a learning experience, if not an ultimately financially pleasing one. Any comments, insights, corrections would be greatly appreciated. The big hole in my reasoning, I think, resides in the dumping part of the equation, because if perhaps they were savvy enough about it they could have hidden it within the flurry of volume on those crazy days. I still think we would be much lower, though, if that were true. Oh well. Thanks for your time and attention. |
