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Re: silverline post# 6193

Monday, 10/15/2012 12:37:32 PM

Monday, October 15, 2012 12:37:32 PM

Post# of 9229
Agreed. My own theory is that part of the aversion in China stocks is on fear of volatility, not just the old fraud argument.

So LPH has done a reconciliation to eliminate fraud risk. However, to alleviate fear of investors suddenly turning the other way like a heard of lemmings, reducing volatility is a plus.

My personal opinion -- for every 10 people that invest in a stock with high volatility, two get shaken out and are afraid to ever come back to that same stock. So there would be more investors holding strong if there was less volatility, just a slow climb with a tiny sawtooth pattern, instead of swings from the 52-week low back to the 52-week high over and over.
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