The markets, especially in the era of the trigger-happy day trader, can be extremely irrational in the short term. Stocks are often priced with absolutely no correlation to the fundamentals of the underlying equity in the company. But eventually the cruel efficiency of capitalism works and the stock will be priced on fundamentals. After all, Morgan Stanley is filled with great salespeople. But remember it has to sell equity in a company that can't sell its product, even for the cost of goods.
Nobody's that good.
Aram Fuchs is the CEO of Fertilemind.net , an independent Internet equity research and consulting firm. At the time of publication, he did not have any interest in the securities mentioned in this article. Mr. Fuchs frequently buys and sells securities that are the subject of his articles, both before and after publication. View the text only version for easier printing. Previous Next Send to a friend.