Hands down, the most frustrating aspect of investing for me is buying into a solid, proverbial gold mine, only to discover that the current shareholder base are conviction-less cowards tripping over themselves to undermine what’s in the company’s best interests.
Unfortunately, it’s these very situations that tend to prove the most profitable, because there’s a never ending shortage of frightened shares coming to market, which can be scooped up over prolonged periods of time for bottom-low prices.
When I find myself in positions where I have no spare cash, though, these deserters shaking my boat are a source of furry.
Take for instance, BAS. The stock cannot seem to find its legs, because every time it makes a push over $12, a flood of sell orders comes from somewhere in the backfield. Why? Oh well because shareholders are just so worried about the next quarter of numbers.
Here’s the thing. We already know how the next quarter of numbers will look – awful. And the stock’s still cheap. Now shut up, calm down, and grow a back bone.
Another keen example would be CCJ. The stock gets blasted every few months by a wave of fleeing children masquerading as shareholders, because the uranium market has not instantly completely recovered. Comically, we’ve hit the point where every analysis on uranium is finally admitting that it’s way undervalued and due for a strong rebound.
So what’s the problem? Oh, well “when” that rebound occurs could be this year, or sometime over the next several.
Am I missing something here? The rebound is going to double uranium miners, at least. Most of you fund managers are lucky to average 5% annually. What’s the problem here?
I’m going to end my morning rant on that note. The summary is: a stock’s biggest threat usually comes from within, by double-dealing company owners trying to outsmart the rest of the company stock, usually to their incompetent failings.
10 Responses to On The Subject Of Spineless Shareholders
Seen the pics of the air pollution in Beijing? All that coal burning. I just happened to be reading an article on how China and Brazil were leading the world in pollution abatement, while watching the choking wretches in China. The only way the get rid of that mess is to get on nuclear power – NOW. CT do you have any info on how many of the 25 reactors “under construction” in China are really under construction?
Nope, and it’s China, so,…good luck with that.
Oh well, Abe-san is a bit more reliable.
Interesting – Abe,Shinzo could be loosely translated to Godfather in Anglais.
You must post this on the Fly’s blog. He will be elated.
In other news, the “bipartisan” committee from the House, meeting with the White House today, is basically comprised of 4 Democrats.
Combine that with Obama’s suggestion that he’ll deal with gun control after the debt ceiling, and you have got strong support that any serious gun control’s will be dead on arrival.
Expect the WH to harrass gun manufacturers, until they organize a class action lawsuit. Status quo wins the day.
REGI is another stock that can never hold after a spike, yet it is clearly among the most undervalued biofuel plays. 2012 blender tax credits are set to bring in $2 per share in current quarter, and biodiesel RFS2 mandates call for 28% increase in volume blended in 2013 YoY. Traders sell every rip, with high correlation to ethanol producers, even though biodiesel has different economic parameters driving profits. Time to accumulate the dips – 2013 will be a good year as they earn blender credits each quarter, on top of the 2012 blender credits being applied retroactively.
True as always re: ccj, good sir. I thought about selling puts but then I saw that the premiums are pathetic. And so I am left with no choice but to load up my boat with more CCJ common shares. And so it shall be.