Data Deposit Box Inc DDBXF

RE:What’s up with Ddb

[thetruthwewant]

The answer is somewhat offensive. In short, there is more "gambling" than true investing going on here.

Truthfully, most stocks on the TSX-V are penny stocks, and because of this the entry point is much lower. People on this exchange invest less amount of capital, and are typically chasing a quick return on a daily or weekly basis hoping the make enough to re-invest it into another high-flying stock. Think about it - if you invested 10k into DDB yesterday, you made ~2k today, and that is a lot of money, to some people. 

True investors buy low and sell much much higher. Investing in the true sense, takes time. Look at the history of any of the major stocks (Microsoft in the early 90's or Coca-cola in the 80s). Imagine being an investor in those companies and you will gain appreciation for the type of time-horizon required for an investment to mature and reach the heights of its value. Imagine the number of people who bought Microsoft at 35 dollars then in a panic sold at 32 only to see it quadruple in price a few years later.

Look around the boards, such as here or even on CEO. It's full of people whining about the short term performance. These are the people who will buy at .12 and sell at .15 and think they made a sweet couple dollars. In truth they are the weak investors and they are the reason that stocks sputter around for so long.

What you should be looking for is a stock that is being heavily accumulated and held by a few solid, long term strategic minded investors. The games you see going on with various stocks are being played in order to shake the shares out of the weaker hands into the investors who have the long term vision.

So, back to DDB. These games will continue until the major players (institutional investors) begin major accumulation of the stock. In order for that to happen, the weak players have to sell their shares to them. What then happens is that the stock becomes incredibly scarce,  as huge amounts of the stock are owned by a handful of people (who are not selling for the quick flip). 

If DDB starts nailing major clients (and major revenue) and their patented products become the industry standard then this will propel it to new heights. What the major investors are looking for is a major increase in profitability, manageable debt levels, and a sustained increase in earnings-per-share.