TGS 0.00% 4.9¢ tiger resources limited

another bullish call, page-47

  1. 322 Posts.
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    Consider the following arithmetic and then follow it with some predictable irrationality:

    Case 1: Buy 0.072 exit 0.290, return = 300% (round to nearest hundred)
    Case 2: Buy 0.085 exit 0.290, return = 200% (round to nearest hundred)

    Case 1 - YAY! I triple my money
    Case 2 - Nice... Doubled my money

    I teach mathematics and one thing I have learned is that people love to round out fractions and decimals to roughly whole numbers. Now of course this isn't strictly about short selling a stock but the hypothesis is the following kind of thinking occurs:

    A) I don't want to be wildly fanciful in my expectations I with respect to the upper limit on this stock. I think it is reasonable for this stock to reach 29c in a few months.
    Followed by,
    B) If only I could get this stock for those older lower prices, I could triple my money (wouldn't that be awesome/impress my boss/customers/whoever). Hmm.... Perhaps, if I can manipulate the SP and force it down, I will be able to buy in low enough to triple my money instead of just doubling before the imminent re-rate on this company.

    With these lower priced shares the percentages do weird things when it comes to the concept of double and triple. You have little chance of being able to control the final value but its not that hard to manipulate the starting price.

    Just a theory. Call me a crack pot but I would be prepared to back myself and call a dip in price down to the low 7c range prior to the imminent re-rate.

    On the other hand it seems to me there is a kind of self fulfilling prophecy in regard to how the market works if enough people believe that a certain price point will be reached even if the thought process behind that belief is flawed the net result can be to push the price to that place it is believed it will go.

    After all humans are predictably irrational:
    http://en.wikipedia.org/wiki/Predictably_Irrational
    Read Dan Ariely's book on it if you want.

    The FA of TGS seems pretty clear SP will come up at some point. However, there is more than enough evidence to demonstrate there are economic forces at work which will obviously push the SP down below the current SP prior to FA affecting the SP positively.
 
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