Graham's favorite allegory is that of Mr. Market, an obliging fellow who turns up every day at the shareholder's door offering to buy or sell his shares at a different price. Often, the price quoted by Mr. Market seems plausible, but sometimes it is ridiculous. The investor is free to either agree with his quoted price and trade with him, or ignore him completely. Mr. Market doesn't mind this, and will be back the following day to quote another price.
The point of this anecdote is that the investor should not regard the whims of Mr. Market as a determining factor in the value of the shares the investor owns. He should profit from market folly rather than participate in it. The investor is advised to concentrate on the real life performance of his companies and receiving dividends, rather than be too concerned with Mr. Market's often irrational behavior."
Your fear of missing out convinced you that what was overvalued at $1.80 was a steal at $1.89, and your ego has told you that you made the right decision as price soared to $2.23. Now at $2.06 you are still glad, as you expect the price to return to make new highs - but there is a nagging feeling that maybe you should take your profits and run. How would you feel at $1.80?
Even doubling their profit, where can they go? EPS of 0.06 for full year?
Checkout the volume on the days that he sold out - I wonder which director sold out on 26th of Feb to have such a spike in volume? I guess we will find out this week.
CL1 Price at posting:
$2.06 Sentiment: Sell Disclosure: Not Held
