Grow: Why The Attraction?

Discussion in 'Stocks' started by stonedinvestor, Mar 22, 2007.

  1. I can see this firming in an important way...
    A VERY KEY day technically for GROW!You might say- its $4.10 surge takes it out across its intermediate down channel & mov avg resistance as well!

    Now somebody explain to me why this is the stock everyone one runs to ?
  2. Pump and dump...
  3. WHY o WHY didn't I buy the dip on the 20th after the signal?!... :(
  4. hels02


    It's a fund company. The more money going into stocks, the more money a fund company is going to make. So if the market goes up, fund company will make money.

    The more people bailing from stocks, the less a fund company makes. However, since they make a % of the profit and it's the client's $$ they lose, there's no way they don't make $$, just how much $$. They have low/no overhead, and very popular funds. Go look up their financials... very amusing:).

    That and their last quarterly PROFIT doubled. Doubled. How many companies with no/low overhead can say that?

    That said, the stock market goes down, GROW will make less profit, the stock market goes up, GROW will make more $$ (because a % of that $$ is probably invested with GROW).

    These are their funds, if you buy any of them, you contribute to their profit:

    But take a look at their funds... these are 4 and 5 star Morningstar ranked funds... this is like buying stock in Warren Buffet's PERSONAL fortune growth vs buying his management. Who's going to make more money, Warren Buffet, or Warren Buffet's customers? LOL!

    Does that clear it up a bit?
  5. hels2 it does. Sort of a mini BEN which is a good stock. If there is a large short position there must be a short argument what is the knock on this Co.?
  6. hels02


    Well sort of... BEN's been around a while... and is over $100 a share. Growth has to be slower, and I don't see their bottom line doubling (GROW's did).

    They're not lean and mean and moving up, they're bogged down in administration now (compare GOOG to MSFT).

    Hmm... how to explain this. Ok.

    Total Net Income 2005: 1057.63 (in millions)
    Total Net Income 2006: 1267.57

    Total Net Income 2005: 1.45
    Total Net Income 2006: 10.44

    Which of the above is um... 'growing' :D ?

    BEN = Value, GROW = Growth

    within the same sector and industry of course.
  7. hels02


    Sorry, didn't answer your question.... working on something else too, so a bit distracted here:).

    Why the knock on GROW? I think it's the bear action myself. If the markets go in the dumper, and we go into recession, people will be bailing from stocks period.

    The vast majority of people are holding funds, not individual stocks. Pensions, financial managers, analysts, etc all recommend funds... it's just easier for most people.

    GROW has 4 and 5 star funds, but because GROW has less track record, people watch them more closely. Vanguard, Templeton, Fidelity, et al are so well established, people don't run to get their money out when the market crashes, they just complain around the water cooler.

    They would sell funds like GROW has first.

    Also, GROW has international stocks... keeping in mind that for the last year, global investing has been very hot, and a lot of people have this delusion that the US markets and the global markets are not related (ie, if WE dump, it's OK, I am in INTERNATIONAL funds!). People just woke up to the fact that when we dump, they dump. Are international funds going to be as hot as they were? Dunno.

    I think the short interest is more a testament to how beary people were about the market as a whole. While there's not sufficient data to back this up, it may be that watching the short interest on GROW could be a nice indication of market sentiment:p. That is, a lot of people expected a crash, and are willing to bet on it. But knowing the market... we also know that the majority are usually wrong.

    What's the first thing people do when their money's at risk? GET OUT. What are they getting out of? 'Risky' funds of course first. Most long time investors know a bit more about when to get out, we don't panic like new people. What's risky? A new fund. What's new? A GROW fund.

    So, when people think the market will tank, they will dump the stocks dependent on the market first. A canary in a coal mine stock maybe.

    I knew the market was going to be OK when GROW went up after the crash, and everything else was still red. SOMEONE believed it wasn't going to keep going down... a lot of someone's or they wouldn't be selling their shorts so early, nor would they be buying it long. Hmm?
  8. Thanks Hels good analysis!