I'm beginning to believe that what a company does and how it does it isn't the reason people buy stocks anymore. Part of this rationale on my part is I've heard several people say they don't "trade the company, they trade the stock".
I take that to mean they are looking only at technicals, not fundamentals. A good example of that is the large number of stocks that go into the hole year after year, yet their stocks trade well because they go up and down and folks can buy and sell on dips.
I've had more than one person tell me the days of "buy and hold" are over. It's now buy-sell-buy-sell-buy-sell the same stock over and over again hopefully taking some small profit on each trade.
Another reason I think this this scenario might be true is look how many stocks actually pay dividends. Very few.
Also I know on several small stocks I have, I think in the back of my mind I know the only way they are going to make me much return will be when (if?) they are bought out.
Of course I could be very wrong about all this too.
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