bymuratdeniz
TOP Money Moves, yes, but why?
TOP Fund (NASDAQ: TOP) moved very little last week. When it is published I hope it will soon be close to its beginning. This marketing tactic is very stupid get better in a few days. As of midday Friday the price was $241. That’s a jump from $6.72 on Wednesday. These share price movements happen, but the bigger question is whether they will last.
TOP Finance.
At that peak TOP was worth more than $6 billion. So, the obvious question is whether it is possible to pay for it? The answer is no. Really, not at all.
The final earnings – profits – are around the $5 million mark. Yes, it’s 63% better from the past but still. Even if the margin is 100% (and it isn’t) it won’t support that kind of value.
But are there any big changes to support? A drug research company can achieve that kind of growth rate if the FDA grants it an emergency license. Some affiliates have just been lucky. Did an investment do well? You know, Peter Theil’s 401(k) was doing pretty well off of Facebook at one point.
But even then maybe we should look more closely at TOP’s work.
“Our management companies generate income by paying commission fees on futures transactions based on the price of each futures transaction contract. customer base to Asian investors. to the South.”
Ah, no, they don’t work as principals
Another way – I can think of it – is that the value of the business may increase if there is a principal. As with many contracts for the difference of “traders”. So, the money lost by the customers becomes the money of the company. These CfD brokers are working very much like bookmakers as they are brokers. Or, another way to say the same thing, is that the market is exchanging its own internal books, rather than being a mere channel to the general markets. Because someone like Schwab is a trader, (albeit an insider trade sometimes, like all traders). But if they don’t become principals that may not happen.
Other income – such as MF Global – is the margin required by the trades that are passed on to the firm. They can network with their entire marketing book. This will generate revenue for the company. Same with MF Global but it means it all goes away.
However, the margins in the money markets are relatively short-term, so they gain a percentage point or two each year. It’s nice to have a budget but – again – not enough to support that kind of $ billion valuation.
So, no, nothing here
Well, traders are very good and growing for the future, but they are only traders. Working on fixed costs. The revenue will only increase with more book production. This is a big job, part of the nuts and bolts of the financial system and it takes people to do it. But that’s not the way things deal with radical changes, so prices fluctuate wildly in retailers.
So, what to do?
Well, this one from Seeking Alpha itself gives us a good taste. For some reason TOP goes wild. Maybe a few people decided to sell to a small company with a small car company to see what would happen? What do we call a “ramp”. A pump or pump. The difference, in the slang of my market at least, is that while the second is planned and criminal, the first is just one of those things. A Pump and Dump is deliberately designed to trick unsophisticated traders into buying at a peak that results in profits for those who dump their stock. It’s a ramp, well, that’s the ramp up without much thought and a plan for deceiving those innocent people.
This could also be a bit short. The short position is 6 percent, but the float is too low to be pressed. A planned and organized attempt to create a scam is also market manipulation. One customer because no.
Here’s the thing
For those of us who are outside of all these plans, no matter what or what, the difficulty is knowing what to do. For one of those plans it depends on triggering some marketing plan for them to continue. OK – but how long will the plain last? Since we can all see the joy of buying at $12 and selling at $200 why not stop buying at $100 and that’s when the plan was followed?
The same goes for taking a short break. Let’s say that all of the above has been seen and cannot be sustained. So, we’re short at $150. A jump to $240 would be too painful, if the pockets are too deep to sell off, it will ease our woes.
Personally I don’t think short trading is a profitable way for us traders. But maybe that’s my problem – I don’t see a risk/reward ratio that works for us.
Other HK bank accounts
Well, obviously, SA tells us, a small portion of the HK budget is going wild and all the others will be tempted. Magic Empire for example, but maybe we all had enough of that after the IPO itself. And I’ve raved about AMTD Twins before. I think this is just an escape from what is happening TOP budget.
My view
I really find this all very boring. If we’re trading – as opposed to investing, that long-term thinking – then price volatility is what we want. But we need to understand what price changes will play a role in predicting where it will go in the future. Without that, there is no hope of getting on the right side of that funny.
Why TOP budget? Well, really. There is nothing fancy to say here. In addition to low float, low cap and high short compared to free float. But we can’t place our bets across the market for everything and those trends. And if we form a group to achieve it, we will be guilty of manipulating the market. The result of that is that we have to pay the profits that we received so that they are not profitable.
Also, if we don’t know and just try to follow the momentum then we will be manipulated – that’s not a good way to make money.
But I ended up sticking with that. If we don’t know we shouldn’t trade. Maybe gambling, like a lottery ticket, but that’s not the same as investing.
An entrepreneur’s perspective
If we are not one of the parties responsible for managing this investment TOP Financial we have not yet received the information to know what will happen.
It’s a pretty good idea that big space is fading fast – it’s already over 50% off tippy tops – but we don’t know. Since we don’t know the risk ratio is too high.
All we can say is time TOP Financial will return to the site next week. But that’s not enough for a decision because how much time and space will there be between now and then?
