TODAY’S THOUGHTS – USUALLY FOR MEMBERS ONLY, TONIGHT I WANTED TO SHARE IT ON OUR BLOG
*****The following is the "Today's Thoughts" article that I send to our members on a nightly basis. I have removed the symbols of the stocks that we're invested in as these are for Zenpenny members only.*****
February is off to vivacious start. Our own accounts and managed accounts all hit new all-time
highs today. Of course, this is thanks to our overweight position in ****, which is looking more
and more like it may be done with its short-lived correction. I sincerely hope that some of you
managed to take advantage of the recent dip below 1.30 to stake your claim to a portion of this
company. The upside, from everything I am observing, is extraordinary.
Our most recent holding -- **** --should serve as the poster boy for the affliction that currently
resides within the micro-cap/penny stock space. The lack of recognition and just plain apathy
that exists in this stock and many others like it is a clear indication of the shift in landscape that
has taken place in the equity markets over the past several years.
You have a $ million company here that only one institution is really active in...that being
**** Asset Management, as I outlined in the research report. And then you have the remnants
of the individual investor class who are either so involved in companies like AAPL and NFLX that
they can't look past their own noses or they are attempting to trade the markets based on some
delusion that they can beat the system over the long-term in an era of high frequency trading
programs that know everything they are about to do, many hours before they even draw up the
plans to do it.
Then you have what equates to a pile of cash sitting on the ground..in the form of companies like
****, ****, ****, and LASR a year ago. You know what happens here? Crickets happen...
chirping...a guy with a taco and a street sweeper under the lights at 3am. That's all that's out there.
It deserted and it's sad. It's a display of how lazy human beings really are. It's a testament to the
fact that people think that with a minimal amount of work they can become rich in the financial
markets. "All I gotta do is buy when this line crosses below this point, while these two green dots
intersect on the chart". I mean, come on guys.
Is there any other line of work out there that educated, well-respected people can just get up,
read a book and think they are entitled to pick fruit from the tree at will? Can a guy just wake up
one morning, read a book and then decide he can do a surgery on a torn ligament? Can some
lady wake up, read a website and decide that she's ready to argue a trademark case against a
major corporation? Can a guy roll out of bed, read a few manuals and think he can design a micro-
chip?
These are all things that take years of education, hard work and study. Yet for some reason a majority
of people think that with a minimal amount of experience, a few books and watching Maria Bartiromo
in the afternoons they can get rich trading or investing.
And the real opportunities, they miss them completely. The real opportunities won't be talked about in
the books and they won't be discussed on CNBC. They are there, but they require work..they require
study...they require understanding. All of these things work together so that once you're invested in the
position, you have the confidence to know what to do at every single juncture, without hesitation.
That's what hard work gets you. That's why thoroughly understanding and studying what you've invested in
is so important. So that you don't get lost in the heat of the battle. So you don't run when it's time to charge.
So you don't charge when it's time to run.
Knowing what to do at every single juncture of the investment. That's what understanding, hard work and
research brings.
Rant done. Peace.
