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Justfactsmam

02/24/14 9:57 AM

#6141 RE: JohnXu #6139

buy Van's newsletter for complete understanding... "How To Find Big Stocks"...this March 1st letter (coming out early) should be a block-buster.
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follyism

02/24/14 10:40 AM

#6152 RE: JohnXu #6139

I've been in the industry.

I'm an ex Oppenheimer broker, been in the industry close to a decade. I've had cocktails with Mario Gabelli and chatted up Meredith Whitney many times. Is that relevant? Nah, not really. Just bragging. I've seen it all, been to IR shops trying to pump up all kinds of crappy BB companies. They wine and dine you, invite you to fancy schmancy places like the Princeton Club and try to convince you the company they are paid to represent is the next big thing since slice bread.

Anyway, I've been following and participating in uplisting situations for a long time. I've also been in this industry long enough to just start giggling when someone says an event is "priced in." This is always especially funny when it's with an OTC BB stock.

How exactly is the fact that once this company is uplisted, there will be a group of analysts coming out of the wood work and putting their recommendations out, priced in? Is there a mathematical algorithm for that? Is there an algorithm predicting how many and which institutional investors are going to start building positions in this company? How does that work? Can it predict how long they will hold the stock for? You can predict the future buying pattern of a micro cap mutual fund? A small cap one? A hedge fund? Large transactional brokers?

Is an interview with this company on CNBC priced in after uplisting? What if Jim Cramer says to buy it, is that priced in? How about if Barron's writes an article about this company...priced in? Do you see what I'm getting at here? You can't price in all the upcoming catalysts and some that people are not even factoring in before they actually happen and think this current share price reflects all future events priced in aside from MSA approval, brotato.

Text book analysis, real life industry experience, whatever. You're reading tea leaves as much as the next guy is.