AgFEED's COO opens up a huge Buying Opportunity
AgFeed Industries recently issued a press release that they have a New Chief Operating Officer.
The guy's resume is gigantron. Purina? Turn-a-round success stories? Feed and Hog production experience? Accounting experience, merger experience....on and on and on.
I love the fact that the COO is 50 years old and looking forward to providing his family with a 2nd home in China. That means this guy could be looking at AgFEED as his final home before he retires. That's a good solid number of years of expertise from this dude.
But, smart, experienced investors are aware of what happens almost every single time a new President, Vice President, C.O.O, Chairman, or Board of Director is appointed....
DAY 1 of the announcement.. The Share Price plummets!
This happened with a number of my stocks that I have traded or invested in.
This seems to happen so often that you may as well expect it to occur every single time.
BUY LIKE MAD on this DIP!
I call it the "Management - MisManagement Syndrome" where a new guy comes in and has to be situated into the role and investors preceive that for 1 day the management is managing the new guy and getting him Stock Options and Office Supplies and a Computer Hooked Up and a Printer and ad nauesum.
This 1 Day Chaotic moment is perceived by investors and so investors bring down the share price for 1 Day.
DAY 2 then becomes a SELL SELL SELL SELL DAY (For Traders of the Stock) or a HOLD HOLD HOLD HOLD Day (for Investors of the stock).
You cease buying on Day 2 because you did your buying on Day 1.
Those who missed out on Day 1's dip will come in and scoop up truck loads of stock and the share price rallies back.
When I posted a comment as a reply on (FEED) that was what I should have said to clarify my bullish attitude over this latest press release. In my opinion... This guy is Lighting in a Bottle and a huge BUYING opportunity was so much fun today.
I've increased my stake to over 200 shares of FEED now!
Granted.. Let's say I am idiot... maybe I am and FEED is not a good investment.
Uhm.. Uhm.. I'll wait for AgFeed Industries to do something monumentally wrong before I ever sell off a single share while the stock price is currently a bargain.
I'll hold my shares because the last earnings report was more than a DOUBLING of their revenues.