In your example I've gained $1 and you've gained $1. That's two dollars you need to find entering the system. When MFG goes from $1 to $3, and there are 150 million shares on issue, that's $300 million in capital you need to find to enter the system for every share to gain $2. It appears you've never seen a pump 'n' dump chart in action and nor studied the underlying money flows supporting such a chart action. In fact I dare ya, for the thrill, grab a million bucks and find an illiquid stock with a low number of shares on issue, and keep buying till you drop. I love watching these play out and the accompanying investor emotions as the stocks goes through the stages.
cat lady,
There's not much to talk about with MFG. If they can con a few of the fof people to invest with MFG, then they can charge a fee and make a profit on that. When the fof people go sour with MFG, then MFG can't charge a fee and start accruing a loss. The share price will just reflect people's perceptions of funds inflow vs outflow in the now and tomorrow. We can talk about the investments MFG makes, which are your highly rated blue chips with stable revenue and income, so not much excitement there.
Personally, I think that the death knell has already sounded for the industry. Was having a look at BlackRock's financials over the weekend and their mm businesses are struggling to recapture the heights of 2007 although the market is trading at those heights... sales of their iShares products are boom boom booming though. And that's essentially the way I see the trend, money flowing out of traditional fund investment products (high expense ratio) into ETF management products (low expense ratio).
MFG Price at posting:
$6.67 Sentiment: Sell Disclosure: Not Held
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