Post by
yearninyank on Apr 08, 2021 11:41am
Hypotheticals can be fun.
So a hypothetical ceo builds enthusiasm and confidence with repeated allusions to good things to come. Then hypothetical ceo says "we are undervalued".... Shareholders say "whoopee"...but share price does not react positively as was hypothertically expected. A week later hypothetical ceo says, "here are some new exciting growth numbers".....sell off ensues. Buyback commences. Hypothetical ceo says "why did you guys react that way, never saw that coming, oh well guess we should load up". Then hypothetical ceo lets the good news come from somewhere else and disclaims any knowledge that it was coming but then reminds everyone that he had been telling them the entire time good news was indeed coming and that is why he never thought you would react to the hyped news release by selling off. Hypotheticallly speaking that would keep a hypothetical shareholder from selling at this point. I am not alleging this happened here. I am only trying to make sense of what happened here as an observer.
The update yesterday was factual. The whole nature of expectation and emotional reaction is purely speculative. It can easily be argued another way: "Look, these numbers are positive, they reflect our growth, they are not contrary to anyhting we stated as fact before and your expectations are entirely based on forward looking statements that we are not bound to." If the law allows it then it isn't "wrong". And small cap companies trading OTC have to do what they have to do. They have a duty to their shareholders. I may not understand it, or if I understand it I may not like it. But if a hypothetical ceo smartly orchestrates a hypothetical scenario as I described and a hypothetical shareholder sells out of fear I guess I would side with the hypothetical ceo and keep holding. I would just be sure to voice my hypothetical displeasure with that hypothetical situation.
Back to football analogies: trick plays are not really cool usually but when your team is losing and your coach calls one you accept it and say it was smart. Hypothetically speaking of course.
But I would dump that coach and hire one who spent more time developing an offensive line that could score touchdowns without trick plays.
Comment by
canyousayiii on Apr 08, 2021 12:52pm
LOL! Maybe nuancing the football analogy and the decision making and the post-mortem analysis: there are trick plays that work, and then there are trick plays that flop. ;-)