Zeev's Turnips Patch-No Politics (ZEEV)

[kron7777]

Hype vs Fundamentals:

I think every stock is trading on hype. Or you can call it a story. There are a lot of stories out there. It can be a story of a reputable company that pays dividents and have a p/e of 12. The story here is that they will be able to pay divident forever. There could be a story of a technology begemoth. The story there would be that their technology is the best and will be the best for years to come. Or there is a story of NVEC : the story that a company will someday develop their memory product and will be able to make billions of it. And there is a story of two Sat. radios companies. The story is that there is a duopoly (there are only two licenses and even if someone would want to start similar business the cost would be billions of dollars, great and cheap product that people love, fixed cost business for 220 million cars in USA, possible entries in Canada and Mexico, walkman types of radios for those who don't drive, the potencial market of dozens of millions, etc.
Some stories are more exciting than others to different people. The most exciting stories called hype. Especially if the story is about the great future while current situation is not that bright from fundumental point of view.
I have no idea where SIRI stock is going next: if the media continue to write positevely about them they can go to $15 by end of next year, if the media writes only about their problems (like they had been doing since the stock was at 50 cents) - the stock can grow slowly.