JokeHow am I so wrong about a company?
I have been investing for over 25yrs, but have never been so off on where a share price is headed. Even back in the day when I played with options. I was part of the old investors vs the new investors, who used internet chat boards to gain important information. Our top dog back in the day was, Iomega, the maker of the zip drive, that went up over 2,500% in a period of three months. A momentum stock that was on a run, that would go up 20%, just because a computer with a zip drive was in a screen of a movie. I was on the Motley Fool, all day and all night posting my channel checks. My screen name was goimega, and I wish I was able to go back and read my old posts, but they are long gone. I was young, greedy and fearless at the time, missing work, and spending all day down at the brokerage house on their computer in the office, placing orders by calling out strike prices to their secretary's behind the desk, ordering pizza, and leaving long after those who worked there went home and sitting outside the door reading their Wallstreet journal before the day started. I started with a small sum of money, building it into an impressive amount, in a small amount of time, because of the huge run the stock made, compounded by the fact I was playing with nothing but options. At one point it was enough to retire, I cashed out, smiled with amazement at the check I was holding, only to put it back in the market a few days later because I was addicted to the rush and hearing Joe Kernen's voice on CNBC saying that iomega was gapping at the open, Again.
For months, everyone on the message boards were posting about a meeting that was coming up that would send our stock to the moon, How much more could we have wanted? In the end, they missed earnings and iomega went on a free fall. With a couple puts as protection, I would have made more on the decline than I ever did on the rise. In the end, I lost it all and I can picture the day I walked out of the brokerage office a beaten man. The office was on the second story of an old building with a huge stain glass window. I took the steps and as I reached the bottom, an old timer followed me out and yelled down to me as I left, "you had a good run, kid."
After all this, I re-examined my life; quit my job, and went back to college for a 2nd degree. I found happiness in a new career, met my wife, and have three wonderful kids.
A new problem came up when I diagnosed with cancer, a brain tumor (astrocytoma) and given seven yrs to live. All the planning could not prepare one for this. How would my family get by without me.
I never quit investing, only gave up call/put options, so I decided to start looking for a company that had something that no one else noticed. The search began. It took me first to a small company that was listed on the TSX but after 2yrs I realized that this was not the one. (athough it doubled a few months after I sold it, only to make a huge drop months later) Just by luck, I came upon Diagnocure and PCA3. So here I sit, like many on this board, waiting for the driver. Am I right?
Time will tell