AMAZING AMOUNT OF DISCUSSION FOR SUCH A SMALL CAP STOCK
A colleague is a research "fellow" at a large hedge fund. The fund has such a large research budget that they are doing what IBM has done....they hire smart people to just think up ideas and test them. there is no pressure to produce, just ponder and test.
She has been researching the connection between social media and stock trends. She includes messages boards in the definition of social media. One variable she considered was the amount of talk per dollar of market cap. The assumption is that larger cap stocks will generate more discussion on social media. Makes sense, more share outstanding, more dollars invested, more conversation. And the data bears this out. There is a strong linear relationship between the amount of social media conversation and the natural log of cap size.
What is of interest is the error (residual) between the predicted level of conversation, as a function of market cap and the actual level. What she did share, and there was much she could not, was how much talk NNVC generates relative to its capsize. It's well above the 99th percentile for all stocks analyzed. What this means for the stock price she would not share, and understandably so.
But it's a "testament" of some sort to Gene and his PR machine that NNVC has been able to generate as much conversation as it does for such a small company.
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