Yesterday I wrote about the power of the all time high list.
For some reason more traders and investors are drawn to the all-time or yearly low lists. Most investors would do well to avoid a moments time thinking about them.
The media loves a good mess.
At the moment, because of the massive 5 year boom, the list is small. Mostly oil and metal drillers and a few broken IPO’s like the Habit and Zullily.
The momentum has already left The Habit because the best shiny new hamburger object is Shake Shack and it is not even public yet. It might not be fair, but that is how the markets work. Valuation becomes a trap. Even if the stock goes on it’s best behavior, Wall Street might not notice. The market is not fair. Especially to broken and low priced stocks and companies.
No analysts have ‘sells’ on the companies on the all time low lists, just lowered price targets. Every single shareholder is down on their position. Every blip up is a chance for buried shareholders to sell and take a smaller loss.
This is the grind of the all-time low list.
It’s not just public companies…I have been joking about CNBC for the last few days. They have the lowest ratings in 20 years and the millenials have NO intention of ever watching. But, CNBC still has cash flow so they will continue to piss it away. New offices at The Nasdaq, reality shows with penny lot sports gamblers, ads on Grindr. I love this quote:
Let’s see if sex sells for CNBC, whose reps didn’t come up with a usable comment.A CNBC insider added, “Grindr was part of a network buy through an agency, but I hear it is a popular site, so maybe it worked.”
What is happening at CNBC is what happens to most stocks at all-time lows and can be worse for the ones that don’t have good cash flow. That is neglect, chaos and darts.