Stock Market short term traders are as baffling as they are offensive and even dangerous. Yet their kind of apathy to business realities is deeply ingrained. Short term traders build the life of their activity around the idea of the future and would, one would think, avoid the distractions of the burdens of the past and refuse to be distracted from their mission. It is vital to understand the short term trading community's deepening lack of interest for corporate affairs because it is that apathy, not the activism of past, that is likely to guide - or constrain or confuse - the actions of corporate Investor Relations Departments for the foreseeable future.
There's a sort of rubber band effect in the American short term trader's current opinion with the focus always "snapping back" to concerns wholly unrelated to corporate fundamentals where such concerns, notably in Pink Sheet companies is paramount - many corporations, conscious of the fickly minds of short term traders and the irrational behavior they can produce for a stock are or stay on the Pink Sheets by choice even as they could easily gravitate to the larger trading markets. Traders are exceptional examples of a class which can be diverted by major hype, be it explicit, specific or dramatic, but once the hype fades, these people return their attention to finding the next rainbow. This proclivity resemble and attention-deficit disorder.
The challenge for small thriving publicly traded corporations is to resist that tendency. The corporation must understands the need to engage the world. It must be committed to exercising its place in its industry and to muster its global landing platforms and activities to partnering with new members of its distribution network, reaching out to clients, competitors and suppliers to enhance its own business opportunities. But, it should make no bones of preferring the long term interest of its shareholders over the short term sloganeering of chat rooms and promoters.
The general apathy of short term traders is in all too many cases, joined to willful ignorance. At a time when rage is rampant and rationality in retreat, they reject any fundamentally based consensus, for that reason alone. None wants to hear about the damnably complicated business of doing business. Concentrating on business, as management must insist on doing, is the work of cynical or hapless management, or both. No matter that the whole industrial world is taking notice and the corporation's never wavering management continues to fend off acquisitions.
The trader's impulse to ignore fundamentals and give management time to nurture its business including acquisition offers that its good work may be generating hurts all players. Management is correct in espousing a policy of sticking to business less it suffer the backlash against its longer term investors. One company's communications officer also responsible for the Investor Relations Cell opined it this way "we deplore the lack of intermediate to longer term interest by the investment banking community and short term traders, but we continue to defend our priorities in developing our business throughout the globe. Our business is not fueling a counting-house where everything is reduced to moving the stock a few pennies up or down each day."
Sometimes it takes a dramatic event to focus the trading community's attention. That time is now for many fundamentally sound companies on the Pink Sheets, but apathetic and emotional as their record would suggest they'll miss the big opportunity leaving the big bucks for investors, albeit for the mega-buck pennies they'll probably earn on the way up.
John David is one of the nation's most respected expert analysts on the Automobile After-Market Industry. He holds appointments as a covering analyst with some of the world's largest players. He also conducts a private practice as a consultant in capital raises, mergers and acquisitions for small to medium size manufacturers in the consumer, professional and industrial chemical, wipe, wet wipe and car and vehicular care industries.
Falken Industries Ltd OTC: FLKI is a diversified industrial conglomerate that operates in Chemicals, Wet Wipe and Biodegradable Technology. Falken Industries Ltd is the concept behind more than 160 products distributed through a network of global platforms and the recipient of trade awards for innovations, biodegradability and environmental and health quality standards.
Article Source: http://EzineArticles.com/?expert=John_Edward_David
There's a sort of rubber band effect in the American short term trader's current opinion with the focus always "snapping back" to concerns wholly unrelated to corporate fundamentals where such concerns, notably in Pink Sheet companies is paramount - many corporations, conscious of the fickly minds of short term traders and the irrational behavior they can produce for a stock are or stay on the Pink Sheets by choice even as they could easily gravitate to the larger trading markets. Traders are exceptional examples of a class which can be diverted by major hype, be it explicit, specific or dramatic, but once the hype fades, these people return their attention to finding the next rainbow. This proclivity resemble and attention-deficit disorder.
The challenge for small thriving publicly traded corporations is to resist that tendency. The corporation must understands the need to engage the world. It must be committed to exercising its place in its industry and to muster its global landing platforms and activities to partnering with new members of its distribution network, reaching out to clients, competitors and suppliers to enhance its own business opportunities. But, it should make no bones of preferring the long term interest of its shareholders over the short term sloganeering of chat rooms and promoters.
The general apathy of short term traders is in all too many cases, joined to willful ignorance. At a time when rage is rampant and rationality in retreat, they reject any fundamentally based consensus, for that reason alone. None wants to hear about the damnably complicated business of doing business. Concentrating on business, as management must insist on doing, is the work of cynical or hapless management, or both. No matter that the whole industrial world is taking notice and the corporation's never wavering management continues to fend off acquisitions.
The trader's impulse to ignore fundamentals and give management time to nurture its business including acquisition offers that its good work may be generating hurts all players. Management is correct in espousing a policy of sticking to business less it suffer the backlash against its longer term investors. One company's communications officer also responsible for the Investor Relations Cell opined it this way "we deplore the lack of intermediate to longer term interest by the investment banking community and short term traders, but we continue to defend our priorities in developing our business throughout the globe. Our business is not fueling a counting-house where everything is reduced to moving the stock a few pennies up or down each day."
Sometimes it takes a dramatic event to focus the trading community's attention. That time is now for many fundamentally sound companies on the Pink Sheets, but apathetic and emotional as their record would suggest they'll miss the big opportunity leaving the big bucks for investors, albeit for the mega-buck pennies they'll probably earn on the way up.
John David is one of the nation's most respected expert analysts on the Automobile After-Market Industry. He holds appointments as a covering analyst with some of the world's largest players. He also conducts a private practice as a consultant in capital raises, mergers and acquisitions for small to medium size manufacturers in the consumer, professional and industrial chemical, wipe, wet wipe and car and vehicular care industries.
Falken Industries Ltd OTC: FLKI is a diversified industrial conglomerate that operates in Chemicals, Wet Wipe and Biodegradable Technology. Falken Industries Ltd is the concept behind more than 160 products distributed through a network of global platforms and the recipient of trade awards for innovations, biodegradability and environmental and health quality standards.
Article Source: http://EzineArticles.com/?expert=John_Edward_David