No. of Recommendations: 3
Although I realize the point of Bill Mann's article was not to discuss Hemispherx Biopharma, per se, that the larger point of it was to show that people are still easily swayed by so-called analyst coverage...


In my last post I covered only half the problem, that human nature is human nature, and it's human nature for some people to be tempted by greed and do almost anything in the name of a buck -- even if that means deception, fraud, and other types of law-breaking. In this case, that half consists of Hemispherx and their "analysts."

Well, it does take two to tango. Can't have one without the other, or else it just wouldn't work.

And Bill is right, in that Taglich Brothers was effective in pumping up the share price.

Why were they successful? Again, it comes to human nature. At least some segment of the population likes to believe, to have hope. So much so that they are willing to take a "leader's" word without much -- if any -- question. And unfortunately, this extreme carries over not only into politics, religion, and what-not... but also into the investing world, as well.

"Just you watch, it's only a matter of time..." say the small investors. "This new technology is gonna revolutionize the Internet! This new drug is gonna cure cancer! This new fad is gonna take the country by storm!"

Sure, and pigs will fly out of my butt any minute now.

"Oh, but imagine! Getting in on the ground level of an 'undiscovered and undervalued small [micro] cap' that will change the world! Remember all those early Microsoft investors that are now multi-millionaires? Untold riches, baby! Easy Street, here we come!"

At the root of all this hope and undying belief is just more greed... again, a part of human nature that will never disappear as long as we as a species are alive.


Bill says that "[t]here are a few companies...[he] cannot believe people invest in..."

I say: Why don't you believe it? Frankly, I'm not surprised at all regarding this particular case. Same old, same old.


Both halves have a responsibility.

But neither of them will ever fully take on their responsibility.

Human nature.


The levels may fluctuate, but expect more of the same, Bill.

(And btw, thanks for the article, as always!)
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.