The KMAG story is still unfolding and it is just like watching
The KMAG story unfolded long ago. Ironically the CEO cult hero Reid gave his flock the real story back in late 2010. Then apparently with revenue from royalties lagging he decided to play the pump&dump game in 2011-2012, and embellish things with non-existent sales numbers.
Having survived a Grey of my own (with profit hee hee), it's more like watching a dream become nightmare unfold. First one dreams of becoming a penny millionaire. Due diligence suddenly becomes reading the latest PR, and believing them along with the pump posts of everyone congratulating each other for their astute DD (or reading the PRs). You never ever consider asking: If this company had no manufacturing capability in 2010, none announced since then (e.g. outsourcing or otherwise), then how the hell did they suddenly come up with $Ms in sales out of the blue? Nope, just read the latest PR, cheer, and then buy more as it's pumped up. One might call it "Emotional Investing".
Then comes the SEC... 50% loss or more on the first post suspension trading session. Instead of being positioned for a breakout for mega profits, one has mega losses - side swiped and slammed overnight without warning. Whose fault is it? Not our hero CEO being investigated for fraud!!! It's the SEC! They're wrong! The CEO and lawyers are going to slap the SEC around - it's a mistake! It's the evil bashers, wanting our shares! It's the non-existent Shorts! The company has strong fundamentals - just do your DD by reading the PRs (now under investigation for fraud).
Currently in KMAG land a miracle is going to happen any day now. If you believe the posts they are averaging down into oblivion. There's that dream it's not a nightmare, Emotional Investing in tact. I feel like a pilgrim in an unholy land when reading those pump posts on the KMAG forum. Evil everywhere! LOL
The Jewel of the Mind is Colored with the Hue of what it Imagines
