Hey guys, help me out with a little dilemma I'm having...I've read almost a dozen books about stocks and how to make money on the market and every single one of them said to look for stocks with amazing revenue/earnings growth and that the price of the stock will rise along with it. So my question is, why do stocks with bad fundamentals (revenue/earnings loss) continue to make such huge profits?A very recent example is Chesapeake Energy (CHK), this company's revenues and earnings have fallen the past year and recent quarter yet the stock continues to make huge gains. What is going on?Any input would be greatly appreciated!
I believe no one person knows the answer to your question. A few possibilities? People that have no education on the subject, no understanding of what stock is, no understanding of what makes a successful business, many purveyors of get rich quick schemes, and high speed trading that sucks them in and spits them out. Couple that with the ease of buying and selling through a broker account and a computer and you have a very high possibility of a succor's holiday. There is a famous quote by a cowboy named Will Rogers that goes something like this. "There is a succor born every minute, and two to take him."
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