[HN Gopher] The Whimsical Investor
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The Whimsical Investor
Author : fi-le
Score : 36 points
Date : 2025-04-14 07:43 UTC (15 hours ago)
(HTM) web link (fi-le.net)
(TXT) w3m dump (fi-le.net)
| ryandamm wrote:
| Curious if anyone else reading this knows about the equivalent of
| US "pink sheets," publicly traded companies that have either
| never been listed or have been delisted due to low share price /
| market capitalization.
|
| Here in the US, you can buy publicly traded companies in the US
| for a song; in fact, that was the source for the "acquiring"
| company in a lot of those reverse-acquisitions of the late 2000s
| / early 2010s: publicly traded companies that had a ticker, but
| were basically defunct. A company that wanted to go public
| without the scrutiny of an IPO process could "buy themselves"
| with the tiny, publicly traded company, thereby getting a ticker
| and access to retail investors. (This was not a good phenomenon,
| fwiw, though it definitely anticipated the SPAC craze... which
| was also not good, for similar reasons.)
| blobbers wrote:
| Why not good? Gives an investor a chance to invest.
|
| Investment has the risk of loss. You should do your homework
| before risking the loss!
| mikestew wrote:
| _Gives an investor a chance to invest._
|
| It gives the unwitting a chance to lose their money. "Do your
| homework" against professionals whose job it is to make your
| homework as difficult as possible, including the very tactic
| you seem to be arguing for.
|
| Meanwhile, if things such as SPACs are such solid
| investments, why are they pulling such weasely stunts to
| begin with? (A rhetorical question, at least it is to me.)
| kjellsbells wrote:
| Companies like these are hard to find in the US because of the
| twin curses (or joys, depending on your views) of "maximizing
| shareholder value" and "SEC regulation".
|
| If you list on a big exchange, your investors will expect revenue
| and profit to go brrr quarter after quarter forever. It's a
| treadmill you can never get off. Amazon is uniquely special in
| that Bezos persuaded investors to keep faith for the best part of
| a decade. Or perhaps "lucky": one wonders what their stock price
| would have done without the incredible luck of the former side
| hustle of AWS becoming the engine of their business. (Not to
| denigrate the incredible feat that it is, or the work that went
| into it.)
|
| Regulation provides some practical limits on how small you can
| be, too. All those 10-Ks and audits and SOX compliance don't come
| cheap. You need to be big enough to employ specialists to do it
| or rich enough to partner up with Deloitte.
|
| The alternative is to list on a pink sheet exchange, but then you
| are keeping company with a long long tail of companoes that give
| off sketchy vibes. A one man Nevada corporation selling healing
| oils, or an interest in a hitherto-undiscovered source of
| limitless energy. I cant think of any company that graduated from
| this part of the market into full DJI/Nasdaq respectability.
| Maybe someone knows of one?
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