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ANALysts & Venture Capitalists Know S#@! About How SmallCap Stocks Trade

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While I respect Andy Kessler for making a ton of $ back during the bubble and writing two superb books–Wall Street Meat and Running Money, this piece of s$#@ interview he gave on smallcaps really makes me mad. Not only does he believe it a foregone conclusion that investors should look for companies with emerging technologies, but he also refuses to name any names or give any kind of timeframe whatsoever for his theory.

To Andy and all other venture capitalists, do your thing with big companies, but don’t talk about smallcaps and microcaps—these companies ALL have cool technologies, but this isn’t 1999, most of these companies are gonna fail and their grim reality is reflected in their stock prices. While you have good intentions, interviews like this are what gets people investing / believing in these POS companies, inevitably losing $ and thinking this niche is random, which, if you focus on the proper variables—chart, volume, manipulation, message board hype etc—is clearly not the case. Dangerous dangerous dangerous, welcome to why media outlets are sooooo bad with smallcaps and microcaps–it’s a different world down here in the gutter, ain’t no place for WASPs!

Posted in ANALysts, Financial Media Circus, idiots, Rants, Videos

  • bdog

    I need something to short anything looking good coming up? All my prospects arent ready yet. Maybe I looked over some? thanks guys

  • bdog

    I need something to short anything looking good coming up? All my prospects arent ready yet. Maybe I looked over some? thanks guys

  • Jesse

    VISN has dropped more than a dollar today, think it’s related to this?

    http://www.fool.com/investing/general/2008/04/21/get-ready-for-the-fall.aspx

    Or is it just a legit drop…

  • Jesse

    VISN has dropped more than a dollar today, think it’s related to this?

    http://www.fool.com/investing/general/2008/04/21/get-ready-for-the-fall.aspx

    Or is it just a legit drop…

  • http://www.investorslive.com/blog InvestorsLive

    and FEED loses 19!!!!

  • http://www.investorslive.com/blog InvestorsLive

    and FEED loses 19!!!!

  • Ryan

    FEED is fading…. so is the entire market, though. There is no shares to short, but tempted.

  • Ryan

    FEED is fading…. so is the entire market, though. There is no shares to short, but tempted.

  • Dan-O

    Careful with VISN, it’s a real company and still in a uptrend. It could hammer a short seller.

    I do not have a position in it, but I’m watching it closely.

  • Dan-O

    Careful with VISN, it’s a real company and still in a uptrend. It could hammer a short seller.

    I do not have a position in it, but I’m watching it closely.

  • Dan-O

    Damn, I should have read that article first.

  • Dan-O

    Damn, I should have read that article first.

  • http://www.investorslive.com/blog InvestorsLive

    Watching VISN for entry $13.30 if it doesn’t sell off again

  • http://www.investorslive.com/blog InvestorsLive

    Watching VISN for entry $13.30 if it doesn’t sell off again

  • timsykes

    who knows with those articles, chart has no support, not a reliable pattern for me

  • timsykes

    who knows with those articles, chart has no support, not a reliable pattern for me

  • Roderic

    Take a look at COIN

  • Roderic

    Take a look at COIN

  • Oliver

    i think he has a point. he isnt talking about a few 1000% increase. he claims 50%, bam. think about it in what are you start liking them. isnt that when they increase 50% as fast as possible on some stupid technology that they claim to be the best.
    so i think this guy would actually make your strategy more beneficial since people who will believe his nonsense will try to find those stocks that sugre those 50%. but since there is more action, more people looking theres actually a higher possibility to have bigger spikes.
    in my opionion you should be saying thank you for trying to get more idiots to play that game. lol

  • Oliver

    i think he has a point. he isnt talking about a few 1000% increase. he claims 50%, bam. think about it in what are you start liking them. isnt that when they increase 50% as fast as possible on some stupid technology that they claim to be the best.
    so i think this guy would actually make your strategy more beneficial since people who will believe his nonsense will try to find those stocks that sugre those 50%. but since there is more action, more people looking theres actually a higher possibility to have bigger spikes.
    in my opionion you should be saying thank you for trying to get more idiots to play that game. lol

  • timsykes

    there will always be idiots playing the game, what i dont like is how difficult it is for me to convince people this stuff aint random cuz people like this, no different than Sri talking about CNOA, mislead the public into thinking macro trends matter to smallcaps when in fact they have very little bearing

  • timsykes

    there will always be idiots playing the game, what i dont like is how difficult it is for me to convince people this stuff aint random cuz people like this, no different than Sri talking about CNOA, mislead the public into thinking macro trends matter to smallcaps when in fact they have very little bearing

  • monkiman

    hey tim, I just bought the dvd, book. Im curious on how you traded penny stocks, as your account size grew.

  • monkiman

    hey tim, I just bought the dvd, book. Im curious on how you traded penny stocks, as your account size grew.

  • timsykes

    saw that, thank u, save me a bunch of explaining–as u’ll read and watch, i’ve played them different in different market conditions, never really understanding until just recently their limitations…they’re beautiful cuz they can provide constant profits, but u gotta understand those profits will never stretch into the tens of millions. tough for a cocky kid to understand

  • timsykes

    saw that, thank u, save me a bunch of explaining–as u’ll read and watch, i’ve played them different in different market conditions, never really understanding until just recently their limitations…they’re beautiful cuz they can provide constant profits, but u gotta understand those profits will never stretch into the tens of millions. tough for a cocky kid to understand

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