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Re: ryanmnly post# 4022

Tuesday, 09/29/2009 11:32:12 AM

Tuesday, September 29, 2009 11:32:12 AM

Post# of 16707
fundamentals are completely unrelated to the stock price of a company.

However, exactly what you said: with more and more liquidity, more active investors, the stock price starts to follow the fundamentals.

technicals are simply those emotional fluctuations around the fundamentally determined price, the standard deviation of which is directly related to liquidity

but when a company is just starting out, it barely follows fundamentals.

KERX is probably the perfect example. it started trading all over the map, super low volume, barely any trades. then skymark/esr started "promoting" it, and more and more people realized the potential of that company.

now skymark/esr is in their last stage of that "promotion" introducing it to brokerages, institutions and funds... and now that stock trades millions of dollars per day.

i've seen people try to short both those, especially KERX (when skymark/esr was "promoting" it...) but they got destroyed.

-because skymark keeps drawing more and more and more attention to a stock until it is at the level where it has millions and millions of dollars of support and so many investors that realize the true value of the stock.

lol, i've been with esr/skymark for a while, i've watched how they do things for a while... they've got some strong backing. they don't pick losers. i've also had a few long calls with Anderson and management- they know they're stuff, i've tried to stump them on a few things, and they kept up with everything