Good Morning, UTK shareholders.
When I bought UTK last week just after the fall, I took a look at this board to see what investors were thinking. People were understandably upset, but not communicating. What I saw were 3-4 word comments- mostly slams or rants, written in incomplete sentences. Obviously, choosing to comment was a big mistake- injecting logic into chaos often backfires, and the logic justs gets lost in the resulting paranoia. I do apologize for disturbing the natural state of the board, but at least now some people are writing in complete sentences when they trash me. I won't be a UTK investor much longer, I will soon take my profits or loss on my remaining stock and go on my way. I think it's time I leave you in peace, or what ever the situation here is called. After all, it is what you make it, as is life, and I'm out of place here. Foolishly, I will leave you with a few simple questions to ponder- food for thought, if you are a thinking person.
The financial reality and validity of UTK, good or bad is the same now as it was two weeks ago. Only the stock
price has changed. Which one has affected your wealth?
(A) Financial status of UTK
(B) stock price
What do you think caused the stock price to fall?
(A) UTK might be smoke and mirrors.
(B) Someone made it happen, intentionally.
Who stood to gain?
(A) UTK, because they could do a buy-back cheap.
(B) The person with the plan.
Who stood to lose?
(B) Most Investors.
Why would anyone execute a plan that would cause a large loss for a large number of people?
(A) It's in the public interest.
(B) Their profit was far more important than your loss.
What does that say about their motives and credibility?
(A) Do I really need to spell out the options here??
I bought in to take advantage of a situation already in place. That's investing. When you create that situation for personal profit at the expense of others- thats something else. You should be offended when you have been had, but if you aren't wise enough to understand how it happened, it will happen again- to you.
I've tried to share a point of view I thought would be helpful to those trying to recover. Of course, no good deed goes unpunished and that does not surprise me. Certainly it's been educational!
I wish good fortune to all in your future endeavors!
<<I won't be a UTK investor much longer, I will soon take my profits or loss on my remaining stock and go on my way. >>
Pegasus is: Choose the answer or answers that best apply.
A) A real investor who does not have much conviction, or skill
B) A public relations guy and Cliff did not get his money's worth
C) A pump and dump scam artist
D) A symbol of high flying imagination in Greek mythology
E) All of the above
F) None of the above
G) Other: fill in the blank
Unfortunately for you, ALL of your assumed options are wrong, other than your undefined "other" option. I say for you- because with all the possible choices you offered, you missed 100%. If you mis-read the market as badly, you are probably losing your inheritance, because it would be unlikely you could be losing money you made.
I am what I said I am. EXACTLY. I'm different than most investors here, true- because I specialize in aggressive situations, where things are changing rapidly. I evaluate and analyze differently than most of you, because I'm a short-term investor.
Fact is, when this event started, the nature of UTK as an investment shifted to require aggressive strategy. Long term investors who weren't quick would either sell low and lose, or take a year to recover and break even. Those who were quick and wise would have had a trailing stop in place. They would have sold out near the top with a possible small loss, then bought back in at the bottom, and entered a new trailing stop. They would be even or ahead right now. Which one are you??
What strikes me strange is how many of you seem determined to lose more money. Unfounded rants about crooks and bad books? What do you think that kind of paranoia does to the price? One comment said the board didn't influence price, so it was OK. If an idiot says "fire" in a theatre- it will work just as if a genius had said it, and it will leave the building before he does. Unfounded rumors travel in the stock market, and fast. Then the lemmings panic, and bad things happen to untended investments.
When I want to know who is who, I follow the money point. If you are yelling fire- either you are expecting to profit from price falls, or you are an idiot.
If you are doing things which improve the price (like buying in), the only person you may hurt is the guy who has shorted and not covered yet. He's easy to spot, he's the one yelling fire, or the idiot next to him just yelling. I did not short this stock- I bought 1450 shares of it near the first bottom and made 18% when it sold friday (limit stop got it) in the second suicide rush.. then bought 610 at the new low and still hold them, because I expect to sell them at 14-15 in a week or two. My trailing stop is such that I will come out ahead, no matter what happens next.
This "amatuer" made money, and I work only for me. Nothing I did hurt anyone's position- indeed, it helped all but the shorters. If anyone is a pro here (and there's obviously no shortage) it's the guy who is trashing the value of his own investment and whining because he's losing money. Brilliant strategy, and I congradulate you on your success.
A small group of insiders make a fortune at the expense of gullible small investors. Brokers make huge commissions dumping this crap on poor saps who buy into thier spiel. What is more valuable 1 million shares of stock with a fancy impressive nanme where the home office is the CEO's home or 1 million lottery tickets?
You seem to forget that the drop was a 1, 2 punch. The first came as a result of the web article. The second came about because the company lost money in the 3rd quarter.
I think the lesson here is simple, avoid companies whose profits are all on paper. It didn't take an einstein to glance at the cash flow statement to realize the company was posting big profits while cash flow was going the other way. Think about it, change a discount rate here and a growth rate there and voila, here is the eps.
So tell all your members to always look at the cash flow statement as part of their due diligence.