The DORK stocks concept is brilliant, and your point about OPEN being up almost 5x in a month is the perfect example of how small and mid caps have become equity as crypto. The comparison to Gamestop is spot on, its all about same day options and squeezing shorts rather than anything fundamental. What I find particuarly interesting is your observation that without institutional participation, this has become a different asset class driven by narrative and technicals. I've been watching OPEN closely and the disconnect between the business reality and the stock price is staggering. Your point about these cracks and inefficiencies eventually coming unstuck is something everyone seems to forget when they're riding the wave. The quarterly reporting discussion is also fasinating, the shift from long term fundamental analysis to sports betting type behavior on earnings beats has been terrible for real investors. Thanks for the thoughtful analysis.
Thank you for your comments. I try and focus on the market mechanics gyrating beneath the headline numbers and my default position is that market moves are rarely, if ever, anything to do with the headline economic data!
Spot on re Q earnings Mark - it has become a terrible drumbeat for management teams who try to focus on long term decisions. Would also force analysts and investors to actually analyse and think about companies rather than commentate.
Thanks....it's the nature of markets. High Frequency traders are always looking to find something to 'trade'' and end up ruining the utility of the data they pick - a variation of Goodhart's law perhaps? Removing the induced volatility might also make listed equity more attractive again versus private equity as well?
The DORK stocks concept is brilliant, and your point about OPEN being up almost 5x in a month is the perfect example of how small and mid caps have become equity as crypto. The comparison to Gamestop is spot on, its all about same day options and squeezing shorts rather than anything fundamental. What I find particuarly interesting is your observation that without institutional participation, this has become a different asset class driven by narrative and technicals. I've been watching OPEN closely and the disconnect between the business reality and the stock price is staggering. Your point about these cracks and inefficiencies eventually coming unstuck is something everyone seems to forget when they're riding the wave. The quarterly reporting discussion is also fasinating, the shift from long term fundamental analysis to sports betting type behavior on earnings beats has been terrible for real investors. Thanks for the thoughtful analysis.
Thank you for your comments. I try and focus on the market mechanics gyrating beneath the headline numbers and my default position is that market moves are rarely, if ever, anything to do with the headline economic data!
Spot on re Q earnings Mark - it has become a terrible drumbeat for management teams who try to focus on long term decisions. Would also force analysts and investors to actually analyse and think about companies rather than commentate.
Thanks....it's the nature of markets. High Frequency traders are always looking to find something to 'trade'' and end up ruining the utility of the data they pick - a variation of Goodhart's law perhaps? Removing the induced volatility might also make listed equity more attractive again versus private equity as well?