This is great, seeing my old friend continuity pos
Post# of 166
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There's much to like about USEI as continuity has been drawing out. He doesn't need my help as he is as loyal and supportive as could be. So, instead, I'll speak to something not often explored:
Development Stage Companies
Development stage companies are those engaged in putting together a comprehensive program that will hopefully demonstrate a corporate mission, a business model, and an executive panel composed of effective leadership worthy of attention from investors and their dollars. The one thing a development stage company should NOT have to demonstrate is a history of making money! Being in one of any number of possible developmental stages, the company can be expected to try out a number of ideas. Most will probably be discarded while it is hoped that one or more will indicate enough promise to point the way towards potential profitability.
When reading posts at a blog, you'll find a never-ending supply of supposedly learned posters demanding to see published financials. They will rant and rave, insisting management is deliberately hiding the awful truth about paltry earnings. In truth, development stage companies rarely make any money at all! The job isn't about making money yet---it's all about building the basis from which a company can create a working model that may make money.
So why do posters demand to see the financials that aren't even in existence? And are they appealing to fellow posters or leadership of publicly traded companies with nothing else to do but commune with bloggers?
They rant and rave to influence potential investors. CEO's have no time for personal lives, let alone reading the stuff of social media that casually focuses on complaints of retail investors. So what's left? Other posters. Of course! Now, why do they pretend to be appealing to management when they know management is running a company, not a blogger's persona?
Enter the shorts. Shorts make money by depressing a market. Every time we watch shares drop while waiting to pounce on a great price, we are doing what the shorts do---we are standing in line awaiting the opportunity to build positions on the cheap. The flip side of this occurs when we set our exit price points. In effect, we are "boxing in" our dynamic range within which we are prepared buy, hold, and sell.
The broader a stock's range of dynamic extremes, the easier it will be to profit. This enables an active trader to play both ends of the playing court.
Lastly, while we're on this--- When shorts (aka bashers) attack a young company, they want to destroy it with conviction. They take no prisoners, they want to kill it. The more blood on the field. the more money in their pockets. The easiest way to frighten off new investors is to "warn them" out of the goodness of their hearts (lol) to steer clear of such-and-such a company. Truth be told, their interest is that of gaining greater control of trading action. It's about gaining control of the company by overpowering you, the investor.
My background, prior to retirement, was in Investor Relations. My job was to protect the lines of communication between my companies and their respective public audiences. Analytical metrics, coordinating affairs between management and analysts, brokerages and responding to queries were part of the IR job. PR's are the meat and potatoes of the process, of course, but during the development stages the main key is to just keep trying things out, hoping for the best outcomes and always wearing a smile, a prayer and a calm demeanor.
Tony Miller, CEO of USEI, is such a man. He is always calm while an intense thinker.
That will do it for me for now. I hope this first post of mine stimulates discussion.