HCTV is pleased to present a special stockmarket episode of Mythbusters.
Who are the Mythbusters? Hypomaster Savage......"I'm just a young guy learning the ropes, please don't take me seriously"
and Pisces Hyneman....."If In doubt....C4"
Between them, more than 30 years of experience watching market screens in their dressing gown. They don't just tell the myths, they put them to the test!
HS:...Well Pisces, this is our market special, and I can barely contain myself. Be right back, need the loo. PH:....I'm planning on methodically testing all scenarios, then blowing the bejesus out of something....
PH:...What are we testing today? HS:...We're looking at the old adage, what goes up must come down! PH:...I thought Newton already sorted this out.
PH:...Ok, I'm thinking we set up 2 experimental portfolios, one in a quality stock that goes about its business quietly, and another in a speculative stock popular with the punters. HS: I agree, I suggest we look at NWH and PRR. PH: Agreed....let's build a rig.
PH:...After some complicated calculations, we have decided to shoot Hypo from a canon we've built, each time carrying the shares mentioned in his pocket portfolio. HS:...I'm so excited, I think I've wet myself. We've discovered that these two stocks run on different fuels. NWH runs on earnings upgrades and significant announcements, whilst PRR runs on adrenalin and dreams. So we will need to change the fuel between experiments. PH:....First up will be NWH.....I'll just add a quality announcement..... You ready Hypo? HS:.....God I'm so excited, let her rip!
PH:....Well Hypo has been continually ascending now for 3 months......not looking good for the myth. The only way we can get him down, is a direct hit to his portfolio.
PH:....Are you alright Hypo, I had no other way of getting you down.....I toyed with the idea of C4. HS:....Wow, what a ride...
PH:...Ok let's try it with PRR, I'll load the breech chock full of excitement, and research has revealed that the addition of a Nasdaq listing will help us achieve maximum velocity. All set Hypo? HS:...Ready as I'll ever be!
PH:...Wow, what an explosive rise.....however Hypo only flew a mile high, before incinerating and falling back to earth.
PH:...In conclusion, while a good quality stock may continue to rise.....more often than not a stock driven by hype will drop after a rapid rise. We'll call this one Plausible. Our thoughts are with Hypo's family.
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This episode of Mythbusters, was proudly brought to you by Lobrau Beer.
(20min delay)