market psychology, and ado . .

In considering ADO's recent run to 17 cents, why did it pause there? If rather than a 25% jump in one day, it had crept up by just one tick every second day, would it have paused at 17 cents? I don't think so. But the pennant depicted last night on another thread, I think indicates growing confidence to get past the 17 cents very soon.

I'm reminded of the nickel boom of 1969-70. Poseidon leapt from 80 cents to $12.30 from September to October (I'm indebted to Wikipedia for the details), and then extra-ordinarily it hit $280 in the following February. Nickel prices were booming, but that rise was wholly irrational. Other companies emerged in the froth, and I lost money on one of those, and it hurt then - Genoxy, I was about your age at the time. (I drew the conclusion later that its ownership was crooked, and I've had no reason since to doubt that conclusion.)

But I recall some analysis of the value of the deposits, which showed clearly that the share price was totally out of proportion. It was an enormous speculative bubble. The price, of course, crashed very quickly indeed.

Some years ago I became very interested in an Australian company with a new technology, now in widespread use around the world. That company was sold out from under us, and again, I think there was crooked dealing.

So now, for small companies in which I might invest, it is critical for me to understand (at a layman's level) the nature and significance of whatever it is the company is doing, and be confident in the realisation of its potential; it is also essential for me to understand and be fully confident in the control of the company, at management and Board levels. I have to be able to trust them. I've taken the time to make those assessments. These two criteria are wholly satisfied for my investment in ADO.

Some time back I said on these threads I'd buy more ADO if I had the readies. Well, I freed a bit of capital up, and I did buy more. And if I can free up some more next month, I'll do the same again, at these levels and further, and continue sleeping well at night.