Why you *might want to* buy Mad Catz stock. SOON.

[quote name='Knoxximus']True. This isn't about what makes sense right now because the whole market and conditions surrounding said market are straight retarded. I guess that about sums it up, huh? Lesson learned.:cry:[/quote]

It makes perfect sense. MC is a horribly mismanaged company that has a chance of going bankrupt this year. The reason for the drop today isn't in the inherent value, it is a balancing of the inherent value versus the risk that it goes to $0.00.
 
[quote name='Knoxximus']Hmmm...I knew the financial report just prior to SFIV mania was going to be good but not awesome, but I didn't think it would drop the stock by that much...then again the whole market is all over the place right now as well.

That said, I was definitely on point about the demand for the controllers and the fact that they were going to be desired more and more as word of mouth spread, and that they would be coveted for more than just SFIV (i.e. XBLA titles).

I still think that when the next fiscal report is released that takes the controllers into account (especially if supply catches up with demand while it still exists), that MCZ is still a viable option.

That said, I will conceed that my timing was off. I still stand by my logic though...I guess I need to examine the fine print a little bit harder in the future. Good news is that it's just a paper loss untill I cash in so it's not over yet!:cool:

That goodwill impairment just killed the whole game tho....[/QUOTE]

This is the clumsiest dance around admitting that you're dismally, abysmally, embarrassingly wrong I've seen. And I watched Gov. Blagojevich on the talk show circuit a number of times.
 
Basic market conditions mean nothing when it comes to penny stocks with super low average daily trading volumes. Penny stocks are penny stocks for a reason. The street isn't missing some grand opportunity in these companies. The only reason they continue to trade is because foolish traders attempt to manipulate the swings resulting from the incredibly low volume to their benefit. There is no skill what so ever to playing penny stocks, it is blind luck, pure gambling.....you might as well be buying lotto tickets.

With a stock like MCZ, it only takes 1 seller or buyer of average size to move the stock a very large % because volume is so pathetic.

Before the spike the past 2 days, you had average volume well under 100k......meaning less than $40k of actual money moving in this stock on a daily basis. That is just horrible. No liquidity what so ever.
 
My 401K is ruined.

I give ya credit for making a public prediction. Although the last bullet "Bottom line is, no one is checking, or has ever checked for Mad Catz...." had me chuckling.
 
[quote name='BillyBob29']Basic market conditions mean nothing when it comes to penny stocks with super low average daily trading volumes. Penny stocks are penny stocks for a reason. The street isn't missing some grand opportunity in these companies. The only reason they continue to trade is because foolish traders attempt to manipulate the swings resulting from the incredibly low volume to their benefit. There is no skill what so ever to playing penny stocks, it is blind luck, pure gambling.....you might as well be buying lotto tickets.

With a stock like MCZ, it only takes 1 seller or buyer of average size to move the stock a very large % because volume is so pathetic.

Before the spike the past 2 days, you had average volume well under 100k......meaning less than $40k of actual money moving in this stock on a daily basis. That is just horrible. No liquidity what so ever.[/QUOTE]

Actually looking at the stocks now, the ratios aren't exactly... mind-blowing. Morningstar won't give me the PEG, which is kinda annoying cuz I was wondering why their P/E was so much higher than the rest of the industry.
 
[quote name='BillyBob29']Basic market conditions mean nothing when it comes to penny stocks with super low average daily trading volumes. Penny stocks are penny stocks for a reason. The street isn't missing some grand opportunity in these companies. The only reason they continue to trade is because foolish traders attempt to manipulate the swings resulting from the incredibly low volume to their benefit. There is no skill what so ever to playing penny stocks, it is blind luck, pure gambling.....you might as well be buying lotto tickets.

With a stock like MCZ, it only takes 1 seller or buyer of average size to move the stock a very large % because volume is so pathetic.

Before the spike the past 2 days, you had average volume well under 100k......meaning less than $40k of actual money moving in this stock on a daily basis. That is just horrible. No liquidity what so ever.[/quote]

Liquidity isn't and shouldn't be measured by the volume of trading alone, but I think I understand what you're trying to say (although I believe basic market conditions do have some bearing on any stock's valuation, to what extent would be based on that individual company).

I do agree, however, that in general, a stock like MadCatz is high-risk and a very big gamble for most investors, especially with the kind of "connect the dots" logic that was originally used in the OP.
 
Threads like these are why I'm proud to know financial advisers...
 
I wouldn't be buying their stock solely based on an expensive joystick coming out. While many think the videogame industry is recession resistant (I won't go so far as to say recession proof), that applies to games which are relatively cheap entertainment, NOT highly specialized expensive peripherals.
 
Wow, if I lost a grand like the OP I'd be pissed. Hell if I lost $20 I'd be punching a hole in the bedroom wall. No way would/could one little peripheral make that much of a difference in a company's stock. Especially something for a game this niche. I'd say it was a lesson well learned, but that's be something suited more for Mike Brady than myself.

Anyone remember the Saved by the Bell episode where Zack took all the class money and invested foolishly in potatoes or something? Yeah, we should all learn an economic lesson from SBtB. Word.
 
[quote name='BillyBob29']Basic market conditions mean nothing when it comes to penny stocks with super low average daily trading volumes. Penny stocks are penny stocks for a reason. The street isn't missing some grand opportunity in these companies. The only reason they continue to trade is because foolish traders attempt to manipulate the swings resulting from the incredibly low volume to their benefit. There is no skill what so ever to playing penny stocks, it is blind luck, pure gambling.....you might as well be buying lotto tickets.

With a stock like MCZ, it only takes 1 seller or buyer of average size to move the stock a very large % because volume is so pathetic.

Before the spike the past 2 days, you had average volume well under 100k......meaning less than $40k of actual money moving in this stock on a daily basis. That is just horrible. No liquidity what so ever.[/QUOTE]

All of which is what made the OP so suspect in their motivations.
 
I had no ulterior motive. And yeah, I'm out quite a bit of loot, and hopefully I'll end up breaking even in the long run. As I said before, I'm not hurting for it, so I'm not sleeping funny or anything (though being excited for SF4 has taken it's toll).

So yeah, I blew this one....hard, and I have no excuses. Hopefully I'll have better luck next time.
 
[quote name='ninja dog']I lost my kids' college money thanks to this thread. thanks knoxximus.[/quote]

If this is true, you're an idiot. Investing is for money you can spare, not something you're relying on.

~HotShotX
 
simpsons_nelson_haha2.jpg
 
[quote name='HotShotX']If this is true, you're an idiot. Investing is for money you can spare, not something you're relying on.

~HotShotX[/QUOTE]


fuck you man. we were desperate. when your back is up against the wall and you have nowhere to turn, you just think that maybe you're due in for a miracle. not this time. my kids are gonna flip fucking burgers.
 
[quote name='HotShotX']If this is true, you're an idiot. Investing is for money you can spare, not something you're relying on.

~HotShotX[/QUOTE]

1229709321337.gif
 
[quote name='ninja dog']fuck you man. we were desperate. when your back is up against the wall and you have nowhere to turn, you just think that maybe you're due in for a miracle. not this time. my kids are gonna flip fucking burgers.[/quote]

This really better be a joke...

I mean, why would you save money this entire time for your kids college only to risk it at the end in a videogame stock?
 
[quote name='ninja dog']fuck you man. we were desperate. when your back is up against the wall and you have nowhere to turn, you just think that maybe you're due in for a miracle. not this time. my kids are gonna flip fucking burgers.[/quote]

It probably won't be that bad. Be sure to tell your kids this story early on enough in life, and I'm sure they'll be dedicated to doing well in school, earning scholarships, and letting their academic achievements help pay their way through college.

All so they never make the stupid mistakes their parents did.

Seriously, you had the same odds taking your $1000 to a casino, and placing it all in a single bet. The only difference is, casino gambling carries with it a negative social perception (i.e. Gambling = Bad, Stock Market = Good).

That $1000 should have been placed in a high interest savings account and contributed to with what you could for 18 years. At the end you would've had about $2854 at 6% interest with zero additional contributions, which is essentially what the best case scenario of this MadKatz stock would've netted you.

Oh, my bad, you were desperate. I wasn't aware desperation allowed for making stupid decisions. But hey, I'm not the one you get to explain that to in a couple of years.

All chastising aside, and on the off chance that you are entirely serious with your story. Suck it up. You have your children's future to prepare for. I suggest you and your wife start making a couple of sacrifices regarding your luxuries to rebuild that $1000, put it into a savings account in your child's name, and keep contributing to it over time. Good luck.

~HotShotX
 
Yeah, well when you're young, you think you're in. de. structible. but then realize life just wants to take you for a ride. I mean, what's up with that?
 
[quote name='ninja dog']Yeah, well when you're young, you think you're in. de. structible. but then realize life just wants to take you for a ride. I mean, what's up with that?[/quote]

I'm 55

:cool:
 
[quote name='Dingleberry']I'm 55

:cool:[/QUOTE]


Yep, the weak lose and the strong win. I guess we'll see if the old axiom stands up. only one will walk away a champion.
 
[quote name='gunm']Liquidity isn't and shouldn't be measured by the volume of trading alone, but I think I understand what you're trying to say (although I believe basic market conditions do have some bearing on any stock's valuation, to what extent would be based on that individual company).

I do agree, however, that in general, a stock like MadCatz is high-risk and a very big gamble for most investors, especially with the kind of "connect the dots" logic that was originally used in the OP.[/QUOTE]

It is true that volume isn't the only measure of liquidity but pulling up a level 2 of MCZ for more than 10 minutes shows you that this is not a liquid stock, you can tell that you would experience a significant amount of slippage if you had to get out quick with a market order.

With such low average daily volume, if you had shares of any meaningful size and had to get out you could not do it without the high probability of causing a nice dip in the offer price the second you hit sell.

I know when I'm looking for trades everyday, I don't take them if I can't get in and out instantly and without my trade affecting the spread. With a stock like MCZ, that is not the case. You would get a severe amount of slippage trying to dump shares with a market order and who knows how long a limit order would take to get filled with such pathetic volume. That is a huge red flag to me right off the bat.

I also don't believe that penny stocks trade off the markets. They don't trade off economic numbers or overall market conditions. These stocks have a very low direct corelation to overall market performance and that is simply because they aren't traded or held by any of the major funds or active trading houses. Sure their valuations are based off the same industry standards but in terms of market performance there is no direct tie to penny stock performance and market performance. Penny stocks are completely their own beast. Penny stocks are "get rich quick" scams not investments or even worthwhile trading vehicles.
 
It's getting worse. http://www.joystiq.com/2009/02/19/mad-catz-well-under-50-complaints-about-fightsticks/

Mad Catz's Alex Verrey issued an official response to the reports of defects in its standard edition Street Fighter IVFightSticks, admitting that there is in fact an issue, though it "does NOT happen on each Arcade FightStick and has been reported on a small number of units." The statement confirms that the "sticky joystick" issue is related to a metal washer moving out of place. While Verrey says that the issue is simple to fix, he suggests contacting Mad Catz for repairs to avoid voiding the warranty.

Verrey told 1UP that the number of complaints received by Mad Catz numbered "well under 50," and that the issue has "blown out of proportion." When asked about the connection between the FightStick issue and a recent drop in Mad Catz's stock price, Verrey responded that "It is my personal belief that the notion that this issue (Which has only surfaced in the last 48 hours or so) has in any way affected our company's stock price is slightly fanciful to say the least." We also doubt that a tiny, angry contingent of the Street Fighter community somehow performed the Guile handcuffs on Mad Catz's stock.
Click to expand...
 
[quote name='Furashu']and the dow drops again... first time lows for 6 years.[/quote]

And what does that have to do with MCZ, which isn't a part of the Dow...
 
[quote name='Purkeynator']wow fortunes are made[/quote]

Of course, everyone is probably looking good with the market today.
 
well, it closed at .30, up about 11%. I think the OP recommended buying though at .37, so its still down about 20%.

the gamestop stock i bought last week though did quite well. 7.12% gain versus Dow gain of 6.84%
 
[quote name='ninja dog']I lost my kids' college money thanks to this thread. thanks knoxximus.[/QUOTE]

Up $0.12 after hours. It's finally above the price OP recommended. Hopefully you held onto it. If you did some cost averaging at the bottom you actually did pretty well.
 
[quote name='jkanownik']Up $0.12 after hours. It's finally above the price OP recommended. Hopefully you held onto it. If you did some cost averaging at the bottom you actually did pretty well.[/QUOTE]


we lost all of our money and I had to eat my children to survive
 
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