what’s an investor?
more often than i would like to see there are indignant comments from the self-indulgent owners of one or another laggardly puppy’s common stock talking about “we investors have a right”… blah bllah ad blech.
here’s an amusing company that came to my attention:
http://www.codatherapeutics.com/
notice how their webdesigner went all 2004 with tabs, and gives us
http://www.codatherapeutics.com/investors.html
read those pages. that’s what an investor looks like.
and yup, ceos answer to those investors.
people who buy common stock in dome grey-muzzled puppy like btim.amex,
or some newer little pup like adls.ob or isco.ob are >not< investing in the company.
their purchase goers to a guy who got the stock from a guy who got the stock…(repeat 12x)
who got it from a guy who got it from a broker who got it from a larger broker who got it from the investors.
fd:clients in isco.ob and adls.ob.
when you see a ceo playing to the holders of the common (at the annual meeting, or on some company blog, or press releases) ur seeing a ceo who is not confident that “earnings” will be paying his pay check anytime soon.
he may be thinking about the strike points on his own options, but he is not thinking about bizness.
he may be thinking about helping his “investors” lay off some stock so they can get a 500% return on their investment and still keep stock. but he’s not thinking about either bizness, or the well being of the people who will be taking that common off the hands of the investors.
when i/r takes phone calls as the easy way of administering placebos to the holders of common it is not acting in the interest of holders of common, but only of the investors who will be selling “insider” stock and option grants from time to time.
this is a principal reason for getting a basis below that of insiders.
that can only be done by being one, or by trading.
and once again proving, “buy and hold” is a false god of the drink the koolaid family.
this doesn;t mean hopping in/out of stocks and getting negative about them if they don’t make you rich in a month.
that;s another drug..and the bucket shops love those who eat it.
it does mean that being ticked off that a ceo didn’t make you rich is an indicator of how dumb >>you<< are for thinking that was his job. his job is to make himself rich, make the investors rich, make the investor’s buddies rich. if there’s something left over for you..fine. in order for any of this to work, a fair amount of the time, holders of common can find people to sell to, at some profit. those profits however have nothing to do with the company.
if any part of ur dd comes from others’ opinions about some dog, remember that. the people who justify their viewpoint as that of “investor” are, by definition, invested only in themselves, but will do whatever it takes to keep that from being obvious.
the buyer of common is a vital part of the food chain. like shrimp. but, he’s not anymore an “investor” than the absence of a bony spine makes the shrimp a shark.
Posted under business
This post was written by admin on August 14, 2010
