Yeah, people are dumb, that’s what I’ve been saying. How can you have a company like RVLT, which Street Sweeper laid out as clearly ridiculous, yet the stock maintains a $250mm market cap. There are literally dozens of others like this one. Look at CTIC. They’ve destroyed $1.5B of capital but have a “growth story” and have done 5 stock splits such that the original split adjusted price of $80,000 has now declined to $1.90 (not a typo) resulting in a price loss of over 99.99%. Yet despite this, the stock has a market cap of $220mm right now even though they have only had revenue once in their entire history and that was due to overbilling Medicare… the company got busted and this was reversed with fines, first time I have ever seen a company report negative revenue.
But don’t worry, I’m sure the current revenue “story” is real. How could it not be?
What about ACFN? Complete fail. LLEN which probably doesn’t have any business at all, yet maintains a market cap of $60mm even though it’s a China reverse merger in 2013. News flash tardos, 95% of the China reverse mergers are epic frauds and someone credible just laid out a case that this is one of them.
It’s insane. Where is the SEC? Starting to get really frustrated about all of this fraud in plain sight and the retards who bid these stocks up.
Yeah, the market is efficient. Cool story bro. It’s not even a problem of finding the information, it’s all right there for anyone willing to do even a little bit of work. The problem is making sure you’re not on the wrong side of a bunch of market tards who are willing to bid up worthless stocks, and oh are they ever willing.
I turn over a lot of rocks and look very quickly. I am not exaggerating when I say that I have successfully identified multiple frauds in 1-5 minutes each. The worst one I’ve ever seen registered as a fraud in about 45 seconds and then it took me about 5 days to prove it. Of course some (most) take much longer than that, but if I can’t immediately answer the question, “Why does this even exist?” it might be a fraud. I don’t think there is one magic bullet screen you can run. I’ve looked at hundreds of companies and have a database of concepts in my head.
I’m not even the best at this out of the people I know. What’s amazing though is how does one guy with a budget of practically zero have such an easy time finding all of these when the SEC, which has close to 1,000 employees and a budget of $1B, have such a hard time (apparently)? I just looked at one where two guys were shut down by the SEC a decade ago, turned around, restarted the exact same business in a new LLC, and then ran an epic fraud where they personally profited to the tune of tens of millions of dollars in a 10+ year fraud _ doing the exact same thing and racking up losses of hundreds of millions of dollars for shareholders, resulting in a 99% loss to original investors _. Like, uhhh, anyone home in Washington DC? I guess not.
All else equal, I’ll always buy the company with the larger short interest. DDD and SSYS are very similar on just about every metric, except DDD’s short ratio is about 5x’s the size of SSYS. I love a good short squeeze.
Here’s another reason you don’t short 3-D printing: because it can make stuff like this.
I didn’t take this photo, but since I cover consumer stocks, I had the chance to go to the Victoria’s Secret Fashion Show last night…to check out the 3-D printing products, obviously.
I sold 70% of my AMAVF (up 90%) and all my DDD (up 30%) today. Left my small position in SGLB alone. Given the massive run-up, today feels like it could be the beginning of a massive correction for these stocks. If so, I’ll buy more after they get whacked. If not, it’s still been a very profitable month.
Great. I took the opposite approach and didn’t disclose in this thread that I had been long DDD. Hopefully the lack of a disclaimer isn’t considered “conflict of interest.” I doubt that the market pays that much attention to what I write here…or does it?
That’s why I kept a bit in AMAVF, though it’s getting monkey hammered today as the only “analyst” that really covers 3D printers said it was time to short it. Pretty sure that guy is frontrunning but so are all the other people on Seeking Alpha.
Long term I’d still have no problem owning any of them at these prices, but trading is more fun.
