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Re: OT MVISI just don't understand the valuation the market is putting on MVIS -- hence I've stuck with the short position. Lucid Motors now has a valuation of $12B ...how is that worth $12B in an overheated EV market....and MVIS at $2.5B where they are (and it got to $3.5B.) I could give lots of other parallels, such as to guys who have real LIDAR deals... I added to my short at $21 last week, and I'm still down substantially on the overall position -- so getting in front of the Reddit train is not something I'm likely to do in the future. There's something a bit icky about the relentless positivity on what happens on a Reddit stock board -- or at least MVIS. To keep the price up, they have to get new people every day to buy the shares from earlier guys who paid a lot less. ....It's almost never said where the market cap is...and how it makes sense. It's aways "the charts show we're going to be $30 next week" or whatever. Somehow in their ether, there's a view that this whole thing must be worth $10B or more....and it's impossible to synch this with real market valuations. I'm unlikely to add to my short, so I'm not getting any deeper into this mess. I don't really know -- to me the whole thing looks wildly speculative. Just a bad decision on my part to get entangled in this...to go short on this is really something that should be left to the hedge funds who can do the sorts of research that I can't. It's interesting to see how self-fulfilling a bubble, if that is what it is, can be. A higher share price brings in institutions who track the wider market of stocks above a certain market cap, and then Reddit brings in tens of thousands of buyers from around the world who read about the wild great fortunes. |
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Msg # | Subject | Author | Recs | Date Posted |
1994 | Re: OT MVIS -- betting against Reddit phenomenon stocks | entrepreneur | 0 | 2/27/2021 3:18:34 AM |