Commentary on today’s AMFE trading.
The classic intraday V dip and rip. This intraday pattern is almost always timed with a critical point in a companies stock trading action and a major sector or company catalyst. Examples would be earnings, options expiration, uplisting, 10K filings, rumored whisperings of buyouts, etc.
It’s a regular occurrence that experienced investors see across the board on ALL stocks, not just OTC. And it’s a legal maneuver, specifically played out to manipulate the trading price of a security in order to buy shares at an artificially manipulated low price in an extremely tight window of time that rarely allows retail investors to take advantage of the low prices, but rather take advantage of retail inexperience to take their shares away.
Here is an explanation using an analogy.
Let’s say there are 5 vendors selling sunscreen on a popular beach. 4 of 5 vendors are little guys just trying to make a buck. The 5th is a connected wealthy individual who runs/owns hundreds of sunscreen stands across many beaches.
This wealthy individual plants a seed of doubt to the other 4 vendors by starting a rumor that the beach will be closed for the summer starting tomorrow, because of city planning of construction and a complete overhaul to build a fancy boardwalk along the beach. All the wealthy vendor has to do is start discounting sunscreen drastically to “verify” the “rumor” in the eyes of the other vendors, which “forces” the smaller vendors to follow suit as they desperately try to clear inventory before the “rumored” closing of the beach for the summer. The wealthy vendor can afford to lose money on any given day due to the hundreds of other stands they own and operate and the ultimate end game.
A few hours later, the smaller vendors have sold out their inventory at a loss and moved along. These smaller vendors lost while drastically discounting their sunscreen, only to find that the wealthy vendor is back to selling at regular price and has 4 new stands open in place of where the other vendors were, now selling at regular price, recouping earlier losses because the vendor is now making 4 times the sales at regular pricing, with 5 stands vs earlier, when they only had 1 stand.
Plug in stock for sunscreen, whatever FUD story you want as relates to AMFE, and the 4 smaller vendors are average retail traders who fell for the artificially created “sky is falling” temporary discount on sunscreen who end up losing.
This market is not made for smooth sailing. Specific to AMFE, I believe the way to win is to be in for the long haul. This means you’ll have to weather some pretty rough seas at times, but I believe it will be well worth it.
Those who have positions in the red, looking to get out for even, I strongly believe your time will come and then some should you continue holding for that green.
As many negatives as there are that have been pointed out, the positives far outweigh the negatives. And in many cases, the negatives that have been pounded over and over, have been overcome.
I’ll comment on the focus being put on Roger Mortimer and his actions.
I’ve stated this before, but as the company continues its growth, even if Roger lacks the experience of a well seasoned and polished CEO, there comes a time when the sheer mass of others involved will collectively have a larger impact on the success of the company than the individual CEO at the helm. So to speak, the company becomes too big to fail only on one individuals actions.
AMFE is nearly, or already at that point. The collective pool of employees working under AMFE’s various subsidiaries, is likely well over 150 employees and growing exponentially on an annual basis.
Lastly, just some general comments.
Ignore the message boards if random words from random individuals have too strong of an impact on your decisions. Educate yourself and learn to verify using your own methods of due diligence and logical reasoning for why to stay or leave.
If you hang on every tick of every trade, that likely means you’ve over invested or have funds in that you can’t afford to lose. One should never be “all-in”. Reduce your position and exposure if you’re that stressed that you can’t sleep at night, and or watch every tick of the trade tape.
Apologies for the long post. Just logging my two cents worth and filling some space on the web while awaiting for.....
Long AMFE
Rec
