All these weekend posts remind me of my first big attempt at investing. Mid-90's, a stock called "Hits Galore" is increasing incrementally by the day. Supposedly, it is a porn-free search engine. I'm working a conference and I must have called Schwab 20 times on a pay phone to get an updated share price.
I owned the stock for about a month. I'm up late every night reading message board posts. There are bashers and pumpers. I've got about 1200 shares in the $2-$3 range. I am totally addicted. Not only was I new to investing, but the entire message board phenomenon was new. Remember "Raging Bull".
The big PR comes out. A religious based trust has invested $50M in "Hits Galore". (Kind of a funny name for a porn-free search engine, but what did I know.) I try to find the name of the trust, but it doesn't show up on the internet. I'm still rushing to the message board at every opportunity. Share price reaches $20. The little birdie in the back of my head tells me to sell at least some of the shares, but I had gotten a friend to buy a couple hundred shares. We want to buy a new boat. I ask his opinion. He says, "Let it ride." This is a Saturday.
By Monday we still don't know the name or the officers of the trust. Word starts to circulate that it's a scam, but the price is holding in the teens. The message board then lights up. There is no trust (true). The story was totally fabricated by mgmt. (true) I'm still a believer until it gets back to the $2-$3 range. Of course by then I've managed to pick up some more bargain shares in the $8-$12 range, so I'm in the hole and so is my friend. Whenever we argue about something, I say, "Let it ride." True story.
I owned the stock for about a month. I'm up late every night reading message board posts. There are bashers and pumpers. I've got about 1200 shares in the $2-$3 range. I am totally addicted. Not only was I new to investing, but the entire message board phenomenon was new. Remember "Raging Bull".
The big PR comes out. A religious based trust has invested $50M in "Hits Galore". (Kind of a funny name for a porn-free search engine, but what did I know.) I try to find the name of the trust, but it doesn't show up on the internet. I'm still rushing to the message board at every opportunity. Share price reaches $20. The little birdie in the back of my head tells me to sell at least some of the shares, but I had gotten a friend to buy a couple hundred shares. We want to buy a new boat. I ask his opinion. He says, "Let it ride." This is a Saturday.
By Monday we still don't know the name or the officers of the trust. Word starts to circulate that it's a scam, but the price is holding in the teens. The message board then lights up. There is no trust (true). The story was totally fabricated by mgmt. (true) I'm still a believer until it gets back to the $2-$3 range. Of course by then I've managed to pick up some more bargain shares in the $8-$12 range, so I'm in the hole and so is my friend. Whenever we argue about something, I say, "Let it ride." True story.
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