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Message: Some late night thoughts.....

I've long been of the view that pretty much any stock can be run up....sometimes short term, medium term, and when there is geunine meat on the bone then gains can be lasting.  

Is there sufficient potential for Resverlogix that would justifiy a market cap of $1 billion USD? How about $5 or $10 billion?  In my opinion yes, yes and yes again.  Whether or not that potential would ever be delivered on is another matter, but just based on potential I don't have any problem seeing it as possible....probable is another matter.

This is just my opinion, and I have expressed it before but not for a long time.  It's my contention that there are players within the market who have the tools and can pull the levers needed to send RVX soaring.  And it is further my view that in order to open that tool box and to pull those levers, that the big players need to have some skin in the game so to speak.....I  don't think there are many Dudley Do Rights out there....if the real players have positions in garbage that they can run up, they will.....if there's other companies with more potential that the real players don't have a stake in, oh well too bad so sad.

I was reading a book recently that gave perfect voice to this opinion.  It's by Cory Doctorow (no relation to EL of Ragtime fame) and it's called 'Radicalized'.  It's actually 4 novellas (longer than a short story, shorter than a novel) and the last one is called 'The Masqe of The Red Death'.

In this novella the main character is Martin, a portfolio manager with a large hedge fund in Phoenix AZ.  Martin is a wiz and has grown his portforlio to over $10 billion in assets under management.  There are two paragraphs that speak to what I'm talking about:

"Its all about information asymetrics.  Markets corrected them.  If knowing a secret could make a stupid, unworthy person rich, then sooner or later, smart, superior people would find that secret out and clear out the misallocated wealth of all those dimbulbs.  Markets were awesome at this...."

Later it's put into a different and more fitting context, that of real estate.

"It was just like gentrifying, but on a grand scale.  Fuzzy headed crybaby lefties thought that gentrifying was some kind of conspiracy to screw poor people, but it was just the market again.  Location is an asset: if you happened to luck into a house that was a short drive from some place really important, a financial center, say, or a beautiful view, and all you did with that location was to build a (sic) lousy little house you couldn't afford to maintain on that plot of land, then the market would solve the problem, and it would hook you up with someone smarter and better than you with the capital to pay you more for the house than you thought it was worth, and then they'd do something with it that made it worth even more.  Lots more....."

 

To me that's RVX in a nutshell....a very nice property with a great view, but those of us who have our little plots, we don't have access to the tool box or the levers that the real market players do...put enough of the shares into their hands and I do believe we could be off to the races.  But unless or until that happens, here we sit.   

 

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Sep 10, 2020 06:49AM
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