Big step up, little step back, big step up, little step back and so goes the market.
You wanna bet that tomorrow is the big step up day?
Today I like to give an example to support my favorite Warren Buffett’s quote:
“With a wonderful business, you can figure out what will happen; you can’t figure out when it will happen. You don’t want to focus on when, you want to focus on what. If you’re right about what, you don’t have to worry about when”
Basically, once you figure out the “what will happen” then price fluctuation doesn’t matter anymore. You are now investing in the “what will happen”, not what the short-sellers are doing. While waiting for the “what will happen”, the stock is literally the playground for the short-sellers. To be affected by price fluctuation due to short-sellers’ action is to allow the short-sellers the luxury of influence. Remember “what will happen” and the affect of price fluctuation disappears into thin air.
Below is the price chart of $PACB. I bought and sold this stock previously but shied away due to my lack of understanding of the sequencing business. I did not have a good grasp of the “what will happen” in PACB. However, to those who have the background and knowledge to appreciate the technologies offered by PACB, their sense of “what will happen” is loud and clear.
Thus, with a sense of clarity, these investors who understood PACB can easily sit through the whole fluctuation of falling price waiting for the “what will happen”. And eventually, they will be rewarded for their action and decision.
Below is the weekly chart of $PACB:
Notice how price dropped from February to the low at October. Then the “what will happen” happened! Company came out with an even better product and the market finally caught on the “what will happen”. Obviously, price soared.
The big money is not on paying attention to the daytraders/swing traders/short-sellers but on paying attention to “what will happen”. Warren Buffett knows what he is talking about ’cause he’s one of world wealthiest legend lives to tell you so.
Currently, I’m paying attention to the “what will happen” on the following stocks and ignore the noises of the price action:
$DMRC– adoption of the Digimarc invisible watermark as the new barcode presentation standard.
$IBIO– success of its IBIO-CFB03 to cure fibrosis diseases
$BIOC– becomes the industrial standard for blood-based liquid biopsy.
$AKAO– success of its plazomicin to treat infection caused by multi-drug resistant bacterials
$ARTH– success of its AC5 to become the global standard for medical hemostat device.
My 2 cents
From my camera (click on photo to see image at 100%)