Valuation of FlyhtSo SGGold you think the market knows what the real value of Flyht is. I used to believe in the efficient market theory once too or the idea that MR. Market knows until experience taught me that that notion is bunkum. The market almost never knows.
There are thousands of examples where the market had it very wrong. A few years ago Nortel doubled and doubled again going to over $100 shortly before bankruptcy and delisting. During the tech bubble multiple companies had valuations in the billions shortly before disappearing. I once had shares in a company that went from my purchase price of 32 cents to $14 and back down to a nickel. At what point did the market have that one right?
Fear, anxiety, greed, speculation, misinformation, wild imaginations, short-sightedness all play a part with individual investors that make up the market as does herd tendancies and momentum. But more often than not the market is blind, deaf and dumb to the ingredients at play with a company below the surface.
The market is made up of the total of all the investors who individually often get it wrong and so the market often gets it wrong. Sometimes insiders know something and take advantage precisely because the market does't know. In short, the market can be really, really stupid.