There is only one way that the price of stocks go up, that's more buying then selling. Conversely they go down when there is more selling then buying. It is great to see a small company grow and put together a foundation of fundamental building blocks that translate into revenue and earnings. As speculators we believe more in ideas and corporate leadership, once the fundamentals are in place much of the leverage we seek is gone. A good tip is to research the CEO and ask this one question "have you ever done this before?" if the CEO has in his history taken a startup and grew it into a successful company he can probably do it again.
Pretty simple logic.
Saturday, October 31, 2009
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