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Re: hummba post# 41345

Thursday, 01/14/2016 7:00:28 PM

Thursday, January 14, 2016 7:00:28 PM

Post# of 57525
A stock does not have a trajectory. A trajectory is a deterministic path. Rather, a stock is a random stochastic process driven by events, fundamentals, and macro factors. If one knows the trajectory you speak of then it is in fact priced in due to the no arbitrage principle. This is the reason technical analysis fails as well as valuation techniques. The price that EDXC should be is exactly the last price it has traded at. This is in fact the purpose of a market. It is always advantageous to be factual about what one does and does not know. As for EDXC, the reason I have purchased shares is because I am willing to bet on a series of future event in which the price is contingent. That is what it means to trade directionally. No one knows the course til we get there. EDXC