Please mock my stocks
How do you know when you've found a misunderstood and therefore potentially undervalued stock? How about when popular blogs like Dealbreaker mock people who own the company based on a fundamental misunderstanding of the company.
That's what happened this week when George Soros disclosed a greater than 5% position in GG recommendation Female Health Co. And I agree Soros is onto something...
The Wall Street Journal’s MarketBeat blog, for example, mused that while Soros’s purchase of Platinum Group Metals (NYSE: PLG) made some sense given his position on gold, when it came to Female Health, “we have no idea.” Taking it to the next level was the always sarcastic (and therefore mostly annoying) Bess Levin of Dealbreaker. She wrote, “Personally, never have I ever heard of a single person who’s even once used a female condom, even as a joke, but leave it to the Don Juan of the hedge fund world to be consistently ahead of the sexual trends curve.” That blog’s commenters demonstrated a similar lack of understanding of Female Health’s product or its market opportunity.