"what most retail can't recognize .. is that an OT
Post# of 43066
Posted On: 06/02/2014 2:39:05 PM
"what most retail can't recognize .. is that an OTC stock is totally separate from a co. and that those who do manipulate can almost
always *outlast* both legit mgmts and *retail*
Read More: http://investorshangout.com/post/view?id=1557...dsb4"
I must fundamentally disagree with you on this philosophy, but with a caveat. There are times when stocks trade on emotion, and the investor can recognize and profit from that. Sometimes stocks go up on news, and it is obvious that it cannot maintain the new price level. But you just gotta have it. As an example of that, TBG has been buying OPTT. Bought first on news... then doubled down after it settled back down to the original price level. But, he knows it... that is the point.
But in the long run and over a multi-year time frame, the stock and the company are one and the same on any market. There should be no difference between the company and the stock in the investor's mind, otherwise he is fooling himself and is in a lot of trouble. Having said that. stocks will go up and be overpriced based on emotions. Greed. Stocks will fall based on Fear, tamed by Pride (wanting to hold on). This is probably more prevalent in the lower markets like the OTC.
But keeping that in mind... in the long run the stock price is what it is as determined by the market, even with the OTC.
The problem for most investors is that they get themselves involved in the initial runup, and it is based on emotion. The stock tells a great story. From that point they don't know what to do, because they did not have a good basis to invest in the first place.
As an alternative approach, the investor can try choosing stocks that have good numbers in the first place. Then pick the best of those. They have the assurance that the stock will not go BK, will usually not have huge price swings, will generate a reasonable return... etc... and the search process will illuminate some extremely interesting stocks.
I could tell you the specifics, but what I use is; good 3-year revenue growth, minimum dividend yield, and low PE. They seem at odds with each other, but you would be surprised what turns up....
They almost always appreciate after they show up on the radar. I would say 9 out of 10 times. If they don't, so what, they pay a good dividend. If they go down, the dividend is higher..
Note; None of them trade on the OTC.
always *outlast* both legit mgmts and *retail*
Read More: http://investorshangout.com/post/view?id=1557...dsb4"
I must fundamentally disagree with you on this philosophy, but with a caveat. There are times when stocks trade on emotion, and the investor can recognize and profit from that. Sometimes stocks go up on news, and it is obvious that it cannot maintain the new price level. But you just gotta have it. As an example of that, TBG has been buying OPTT. Bought first on news... then doubled down after it settled back down to the original price level. But, he knows it... that is the point.
But in the long run and over a multi-year time frame, the stock and the company are one and the same on any market. There should be no difference between the company and the stock in the investor's mind, otherwise he is fooling himself and is in a lot of trouble. Having said that. stocks will go up and be overpriced based on emotions. Greed. Stocks will fall based on Fear, tamed by Pride (wanting to hold on). This is probably more prevalent in the lower markets like the OTC.
But keeping that in mind... in the long run the stock price is what it is as determined by the market, even with the OTC.
The problem for most investors is that they get themselves involved in the initial runup, and it is based on emotion. The stock tells a great story. From that point they don't know what to do, because they did not have a good basis to invest in the first place.
As an alternative approach, the investor can try choosing stocks that have good numbers in the first place. Then pick the best of those. They have the assurance that the stock will not go BK, will usually not have huge price swings, will generate a reasonable return... etc... and the search process will illuminate some extremely interesting stocks.
I could tell you the specifics, but what I use is; good 3-year revenue growth, minimum dividend yield, and low PE. They seem at odds with each other, but you would be surprised what turns up....
They almost always appreciate after they show up on the radar. I would say 9 out of 10 times. If they don't, so what, they pay a good dividend. If they go down, the dividend is higher..
Note; None of them trade on the OTC.
(0)
(0)