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Message: Re: eght ...ceo comments - story stocks

Jun 21, 2011 10:35AM

Jun 21, 2011 11:11AM

Jun 21, 2011 11:27AM

Jun 21, 2011 11:37AM

Jun 21, 2011 11:46AM

I used to play stories too, but each and every one turned into a disaster. My favorite story stock disaster (if there is such a thing as a favorite disaster) was a company called Global Thermal. If I can remember, they were a $2 company selling generators to the military when they bought a patent for a high-temperature fuel cell from a German university. Their "breakthrough" was to make it work at 800 celcius rather than 1000 celcius. This would allow it to be made with cheap stainless steel rather than expensive exotic materials. Supposedly, you could have a washing machine-sized fuel cell in your basement running on natural gas that would provide your house with electricity and heat.

The stock ran up to 50. It was a great story - far cheaper and more efficient than Ballard's PEM fuel cells. Even Enbridge bought a big chunk at 35. But the stock just drifted lower despite announcements of imminent commercialization. A few years later, the company got bought out by FCEL for shares (don't remember the value, but it was low). FCEL drifted lower too. I still don't know why it didn't work, or what went wrong.

I stopped playing stories and now just trade technically. The moment the technicals don't match the story, I'm out. I rarely hit home runs, but I get a lot of singles & doubles.

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