FFIE is soaring. We retail investors should pay attention to.
1.Long-term stock price appreciation requires FFIE fundamentals. Institutional investors are well aware of this, and as retail investors, we should be too.
2.Continuous buying by retail investors can only provide short-term upward momentum for the stock. It may even give existing institutional investors an opportunity to reduce their holdings.
3.Even if a short squeeze is achieved, maintaining stable or rising stock prices still requires strong company fundamentals. Otherwise, short sellers will return, the stock price will fall again, and retail investors who didn’t cash out in time will be stuck.
4.Based on these points, rational retail investors will choose to take profits during a price increase rather than hold indefinitely. This explains the rollercoaster nature of FFIE’s stock price.
5.Therefore, without an improvement in company fundamentals, long-term gains are unsupported, and short-term rises are irrational.
6.Even Roaring Kitty wouldn’t choose a company with irreparably poor fundamentals.
7.How to change, improve, or sustain better company fundamentals is a crucial question. We need to think like institutions while acting from a retail perspective to see how we can help. This can benefit both FFIE and us.
***In my next post, I will explore a retail investor strategy, maybe we can call it Plan X. Interested readers are encouraged to follow and comment.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
72791323 : Thank you This is an intelligently written post which explains why you should never just listen to some random stranger on a message board who keeps saying a stock is gonna skyrocket with no evidence to support their claims And when u question them on it their only recourse is to call u names or accuse u of being a short seller or hedge fund agent Posts like yours are the reason why these message boards exist Thank you again for your explanation
SisyOP : Thanks for your support
Kicker168 : I just like this stock
SisyOP Kicker168: The same to me