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I've noticed that I am right about the 100 point mark for the underperform charm, as depending on a hated stock that shall not be named, the charm flickers on and off for the past few days.

 

This essentially means that despite my heavy shorting of horrific companies, I have net to date achieved only 100 underperform points. Since my overall score is close to 600, this means that 500 of my 600 points have come from going long.

 

Does this mean I am better at finding deeply undervalued stocks? Or that crap companies keep finding new ways to pump their stocks to higher levels?

 

Perhaps a bit of both I thihk.

 

Another lesson learned though - when I first started playing CAPS, and I quickly racked up 500 points, I thought it was mostly due to my excellent shorting skills. Since I'd never shorted a stock in real life, I was actually thinking, maybe I should go out and short some of these scams, since it is pretty obvious that they will all go out of business soon enough.

 

Now, I think it would best to reconsider. Some of these companies are pretty creative at crafting PRs, even if they can't run a company worth a hill of beans.

 

I wonder if anyone else has had similar results in CAPS.

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I have had similar experiences in CAPS!

 

Most of my underperform score comes from Conversion Holdings. It amazed me how they could put out PR, or get onto the board at hotstockmarket.com and pump away. Spelling mistakes, bad grammar, twisting words, misunderstanding of financial principles and obvious lies -- all of it resulted in gains in stock price.

 

I recently posted a rant on RB: CAPS about this (before we had blogs :-( ), as Seabridge Gold hit a $400 million cap. Seabridge Gold has not yet seen revenue (not earnings, revenue) and yet they are more valuable than Lo Jack, not to mention many other companies? Drives me bonkers.

 

If you look at my CAPS page, you'll see a few underperforms that SHOULD be down, but they are up! Portal Player is the only underperform I have that I don't consider intrinsically worthless.

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And congrats on making it into the top ten!

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assuming the company in question is BBI, i can only add that their online rental service might be gaining traction. they've finally figured out how to turn their brick-and-mortar into an advantage (they offer an extra free selection to anyone who brings a DVD back to the store, as opposed to putting it in the mail - by doing so, at least getting you in there, hoping you'll be dumb (or rich) enough to buy Ben & Jerry's for $5)!

 

possible the stock's not as bad as it seems?

 

 

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Even the best PR/hype can't hold a scam up forever. You expect to lose points on these underperforms in the short-term -- after all, if it was obvious to everyone that it was a scam already, it wouldn't be an underperform.

 

I think the reason that you're making more points on overperforms than underperforms is because there simply aren't enough pseudo-companies to go around. Sure, you can put an underperform on every expenses-like-Microsoft, revenue-like-a-lemonade-stand stock in the market, but at the end of the day, there _should_ be a lot more highly undervalued companies than overvalued. Tougher to pick, unfortunately.

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regarding comment #3, lemme just say, "Oops!" didn't look through your whole list, and obviously got the wrong stock...

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Hello Steve,

I absolutely respect ,your top 10 place.

But i thing you cannot achieve this kind of results with

real money.The main reason is :when you short this tiny penny stocks it will be seen very fast and big guys will play against you .

That play may destroy whole your portfolio with real money.

Penny stock also are exetremely volatile.

It will be very hard to stay with this kind of portfolio on top 10 .

P.s.-Steve ,i do not want to upset anyone.

I am just telling what i thing.

Sorry if i disturb you in anyway.

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