Joel Greenblatt's "Mr. Market" and Mayer's 100 Baggers book Joel Greenblatt's "The Little Book That Still Beats the Market" accurately describes that the day-to-day prices of price action of the market does not neatly correspond with the underlying fundamentals and growth of the market. Day-to-day the market is irrational but over the long-term the fair value of a company often appears. At this moment, "Mr.Market" (the phrase Greenblatt likes to use) is grump and the value and share prices are not alighned ------** the perfect time to start buying says Greenblatt ** -- because when Mr.Market is happy he will start buying like crazy (often well over fair value). The problem Greenbelt states is that people feel better buying when Mr. Market is 'happy' (even though it means paying higher prices). Greenbelt notes that the daily swings are detached from the reality of the company value in many cases.
The goal of the investor, notes Greenbelt, is to identify those times when Mr. Market is grumpy for no good reason (i.e., when the stock is actually doing well, such as Adcore posting a 250% increase last week during the second quarter meeting) and to "BUY". This is the time to buy. Fair value is probably over 3 dollars right now and the growth potential in a year from now could be even much higher.
Rather than be upset with the knowledge that Mr.Market is grumpy right now resulting in a share price that does not represent the fair value of Adcore, investors should be literally buying while Mr.Market is grumpy and to see it as an opportunity. When Mr. Market is happy again (which he/she will be soon enough) the price will be much higher and people will feel 'better' about buying more - and you can sit back with your nice entry price and watch the power of compounding.
As Greenblatt notes (along with every other successful investor) the emotions (the pyschology) of investing is what destroys portfolios. While it's understandble to be angry (i..e, @Maggs and anyone else) do not that it's wasted energy. Use the downslide to better position yourself for the ride back up!
I would also recommend the book "100 Baggers" which will allow you to also see the advantage we have right now as retail investors. Big institutions cannot buy stocks until they hit a higher market cap. This means if you get in early (like now with Adcore) you could have a 10 bagger before the institutions even start to enter the game. Also, as the 100 Bagger book notes, there are certain characteristics that Adcore has that could result in Adcore becoming a large capital compounder or multi-bagger as the the author states. Here a few, but read the rest when you have time: 1) Founder CEO - check! 2) High inside Ownership - check! 3) A unique angle/moat - Amphy combined with growing adtech - check! 4) In a growing market - digitial advertising expected to eventually grow to a trillion dollar industry - check! 5) LOW ENTRY PRICE - in other words, getting in early when there is comfortable margin of safety and a low market cap allowing capital compounding - CHECK!, and 6) re-investing back into the company to ensure longer term growth potential - check!....
Here is a free copy of the book (sadly, I bought hardcover before I saw someone posted it free online). But, it's worth reading --- because when you read it you will see that this book is speaking about companies like Adcore.
And, as Donville Kent Asset Management states (their also big on Adcore), people often overlook companies like Adcore and don't get in early enough and only notice when early investors like us have already experienced a 5-10 multi-bagger.
100 BAGGER BOOK LINK:
https://csinvesting.org/wp-content/uploads/2017/05/100Baggers.pdf
Good luck everyone!!