a word to the wise, page-36

Koro..Ah it's called Mug Harvesting!!

This is a very lucrative business..Mugs are generally found in groups ...often talking about turning the unbelievable into the believable ..they often wish for the impossible ..and during summer weather they flock to outdoor pubs and compare notes and compare what could have been???

At the same time the Harvesters meet in Clubs and Board rooms planning the issue of new shares almost always with free options that will die as they lived ..Useless ...and of course there must be a wonderful story of the development of a new invention or possibly rich ground with possible gold to be developed...Of course the better the story the more the Mugs will rally with their money. .. (and the "Other Mugs" will rush to benefit by buying these all but useless shares ahead of the issue ..and so driving up the price)..and yet again the new Buyers of the New issue are" Fleeced at the harvesting" by the Harvesters who will then be off to their club to celebrate the Capital raising or New issue being successful at the fleecing!.. And of course yet another year or two or three of the directors fees and Salaries paid into "the pipe line of broken dreams!!"

Note that Successful Companies making profits with strong Cash Flows and a good return on Equity rarely if ever do a Capital Raising!!!! More often than not these companies may buy back shares from their excess cash...Mugs avoid these shares like the plague!!! You may ask but why don't they buy these shares ..these shares that go up steadily in value and pay dividends ...but they are "Too Expensive for Mugs" who only buy penny stocks!!!!

Mug Shares occasionally fire up in price driven by pure speculation ,never or very rarely do they make a profit and any dividend paid is normally an aberration ie usually ..not ...from a bountiful continuing cash flow!! A dividend paid by such a company may fire up prices in a way not thought possible!! Yes this dividend ,this flower of an hour often sucks in the "Smart Mugs" who at face value assume a dividend is a sign of prosperity and not a red warning flag!!!
All the best to All