Yes, another down day. Down 20% today. However the good news is… the PPS is still up 11% from the big crash Monday and Tuesday. AND… still up a little over 100% from where we began the month. So, if you’re an investor, and you’re feeling a little down because the PPS is not over a penny and a half… think about the 100% increase from where we started the month at. Is the PPS where we think it should be… NO… but we will take a 100% increase for the month any day ! If you are invested in any other stock, can you say its up over 100% for the month ???
Why didn’t the PPS go up today, given that the 10-K is scheduled for release tomorrow, AND the CEO has indicated its the best he’s ever worked on??? We think its simple market forces at work.
A) many investors will not hold investments through earnings (i.e. release of 10-K). They have rules, and they stick to them. Not a bad idea in our opinion.
B) its a long weekend… many investors will not hold investments through a long weekend.
C) Remember… the PPS is up over 100% MTD. If any investors bought in when the PPS was near the low of .0032… they are up over 100%. Good time to sell even IF points A and B were not present.
D) with all of the above present, why take a chance investors will not “sell the news” as is commonly done. Investors can always buy it back Monday morning first thing if conditions are ripe to make another 100% on their money next month. OK, so they may have to pay a little more Monday morning, but its likely to still be under a penny, and still a great buy under, at, or a little over a penny.
If you follow the message boards, you will see there is no shortage of opinions on what kept the PPS from shooting up today. Everything from “shorties drove it down”, and “bashers drove it down”, to evil Marker Makers conspiring to manipulate the PPS. While all of the above together, in some form or degree, could have contributed to the decline today… we still feel its simple market forces at work being the primary reason.
Those of us who are passionate about the company, are frustrated that other investors do not share our enthusiasm and therefore have not bought up the stock. We just need to keep in mind that some investors are only in this thing for the money. Some of those could care less if the company does well, or shuts down… they just do whatever it takes to make a buck (i.e short it, flip it, whatever). Whereas others are invested in THE COMPANY. They think the company will do well and make them a lot of money in the long run, and are willing to wait patiently for that to happen. They enjoy the excitement of being part of something. They will likely take some profits along the way up, but for the most part will likely be invested for years. And you know what… BOTH are right ! As investors we do what’s best for us. Not everybody likes vanilla flavored ice cream. In fact, some don’t even like ice cream of any flavor !
So… enjoy your long weekend… and Monday is another day. If you have your health, you are rich everyday !