Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
a risk in hidden Gems,

if a cult following takes hold in thinly traded stocks, modest buying can push the stocks up,

stocks that are up doesn't = intrinsic value and they are then extra vulnerable.

The TMF cult following of HGSI and its sister come to mind.

A lot of harm is done in situations like that.

Print the post Back To Top
No. of Recommendations: 2

I agree that the new Hidden Gems service should be focused on companies above a minimum threshold of daily liquidity, and I'm sure the Hidden Gems gang are thinking about that, and sensitive to it.

As for HGSI, I really don't think that is a lightly traded stock at all. Even today, well down from its highs (near where we bought!), the stock is trading about $50 million in daily dollar volume, WAY above any such threshold we would put in place for Gems or anything else we do.

If you think Motley Fool subscriber trading or ownership was a significant factor in HGSI running up or coming down, I will beg to differ on that point. HGSI is a large and liquid security, even at these much lower levels.

David G.
Print the post Back To Top