Last night, I saw this blog post recommending buying of a rather obscure stock. Things like these always remind me of the pump and dump scam. Maybe not to the letter as described in the link but similar: a known expert or guru, a lot of noise and a “buy” recommendation, price rise, sudden price decline, and then no more mention of the stock or, if you’re lucky, a short and belated “take profit” note.
Call me cynical, but I don’t just swallow whatever those so-called experts and gurus are saying hook, line, and sinker. They may know more than me but still I try to study the company, read the news about the company, analyze the information, and come up with my own conclusion whether it’s a good buy or goodbye. It’s usually the latter.