lei partnership , page-2

Dude,

The rise to $2-ish will happen becasue the market can never ignore a good story - just as it can never ignore a bad one (see Aristocrat at the moment!)

Seeing there is so few posts of substance on HC at the moment, I will indulge myself......

The market can never ignore a good story. How can I be so sure? Because its human nature. In the case of retail investors that means GREED and in the case of Fund Managers that means putting their reputation on the line. Neither one believes that they can afford to ignore a good story.

How can we forget those "good" stories related to Tech stocks between 1999-2000. The market as a whole simply could not afford to ignore these "stories" because then, as now, the market is always looking for opportunity. This MAH-LEI thing is an opportunity and after the market has been given time to digest it, it will see the opportunity and jump on board.

The Efficient Market Theory (EMH) states that all "known" information is priced into an asset at all times. However the EMH assumes that all market participants have not only heard the latest news at the time it was announced, but that they have instantly made the decision to buy, sell or hold (and in doing so, ensured that the share price efficiently reflects all known variables and news about a stock).

However, in my 15 years of being "in" the market, I have found that there is a "trickle" effect when it comes to news and action. NOT EVERYBODY is fully aware of ALL the news relevant to ALL stocks as suggested by EMH. News trickles down through the market and after days or even weeks, all relevant information is distributed and known to all participants. And even AFTER this has occured, what is to say that people wish to buy straight away or are even in a position to buy straight away. Even a fund manager needs time to work out what he can sell to free up capital to switch into a "new" opportunity such as MAH (if he doesnt already hold).

I agree with you that on an "up" day, MAH might have got above $1.80. But, we have to let the market "catch-up" as it were in this case. We have obviously been more diligent and therefore more efficient than many of our contemporaries.

Cheers