The article states that if you are long term investor Buy, hold, and don’t look at it.
I would make an assumption that most folks here are retail investors and we have seen many of the signs below, happen on our feed. SB let us know in one of his post that this feeling of aprehension was part of the rollercoaster ride we have been experiencing. GT3 has kept us focus. We know the folks that are vested here. Hoping this helps some frazzled folks. Number 2 seems to be playing out recently...
As we all anticipate the months ahead - the reality is that SYA does not start production until March 31, 2023- and therefore there is a possibility that things will remain status quo until then. I've learnt alot from all of you and have appreciated all your input. I'm still learning about the shorts- ugh!
1. Your stock is disconnected from the indexes that track it. Without any new developments, most stocks will drift upwards. This is due to inflation, and growth. Humans create stuff. We go to work every day and create value.Watch the indexes that hold your stock. If they’re going up, and your stock is going down, then someone is selling, or more likely, shorting it.
2. Nonsense negativity on social media.There are two different types of negative posts. The first is well thought out negative posts that show why a company isn’t doing well, or isn’t going to do well, usually backed up by data. These are fine. Usually posted by real people. Some companies are bad, and they rightfully deserve to tank. But the second type of negative post is one like: “This stock is garbage!” This is nonsense.These are posted by paid manipulators or inexperienced investors frustrated by the direction of the stock price.You can ignore these. Just mute the accounts and move on.
3. Price targets by random users that are far below the current price.Manipulators are using what’s called the anchoring effect. If your stock is currently at $70, they’ll say things like “I’m a buyer at $50.” This causes you to question your investment thesis. Did you get in too early? Is bad news about to drop?
4. Your company is trading near its cash value.Say the company you’ve invested in has 5 billion dollars in the bank. You look at the market cap and notice that it’s only 5.5 billion.This means the market is only valuing your company at half a billion.Is your company going bankrupt? Is their revenue plummeting?Are their growth prospects terrible?No?Your company is being manipulated. It might even have been targeted for buyout theft.A company should almost always trade significantly higher than their cash value.
5. Bad news shaves off more market cap than it should. Not applicable to SYA
6. Your stock is red all the time for seemingly no reason.I call this the Triple Red Attack. These drops tend to be smaller. Usually between -0.05% and -1.5%.They sell enough shares to keep it red during the pre-market. During regular hours they’ll nuke it as much as 2-3%. Before the day is up, they’ll often let the stock recover a bit. This is so they can paint it red after hours. It also allows them more room for it to drop tomorrow.You see, manipulators can only smash a stock so hard. They can’t nuke it 5% a day indefinitely. If they bash it too hard, then they’ll let it recover to reestablish positive sentiment. Then the Triple Red Attack starts over again.Wall Street’s goal is to destroy a stock just enough to frustrate retail investors, but not enough to attract the attention of regulators, or serious value investors.Their goal is to get you to sell and go buy index funds.
7. Your stock is trading near its floor. Comparing revenue to market cap is a great method of identifying undervalued stocks. How many years does it take your company to pay off their market cap with sales? The lower number of years, the more undervalued the company.
8. Every pop is being shorted.You notice that every time your stock starts to climb, it’s immediately slapped down again. Often with less volume than when it started going up.They do this to discourage you. Wall Street knows that retail investors pay a lot of attention to the daily movements of their stocks.
9. High short volume, low short interest. These numbers must be reported accurately to financial regulators. They can’t hide the overall short interest in the long run. But what they can do is cover their short before the short interest is reported.This becomes obvious when short volume is high, say 45%, but total short interest is low, say 3%.If 45% of a stock’s volume is people borrowing and selling, then you’d expect the total short interest to be huge.But it’s not. They hide it by covering their short position before the day is over. So, if you notice a large amount of volume before the end of the day, or right at the bell…some of that volume is the shorts covering their position so they don’t increase the overall short interest and draw the attention of investors/short squeezers.
10. Total confusion of fellow investors.
SYA Price at posting:
21.0¢ Sentiment: Hold Disclosure: Held
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