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brooklyn13

06/24/13 1:20 PM

#3512 RE: commoncentsinvestor #3502

Ok, I'm going to go through this one more time, because I like you people.
When institutions invest in a micro-cap, it can often be a "buy" signal, that's why it's important. I'm sure a lot of you follow various institutions - I like, among others, Baker Brothers and Jane Street. Because they invest a lot in micro caps and make a ton of money. CALPERS, too, even though it would seem that, by nature, they would be very conservative, very surprisingly they invest a lot in risky issues. So, for example, when I see that CALPERS and Jane Street are piling into a micro-cap, I start thinking seriously about pawning the family Renoirs and loading up on the same stock.

On the other hand, a rumor of institutional buying is just that, it's a sugar high. Some suckers think it's starting to happen, the price pops but soon crashes, there's no there, there. And that boys and girls is why you should "trust, but verify."