The Sheer Idiocy Of The Markets In One Chart - Oculus Edition

Tyler Durden's picture

While we have no idea if Facebook is right in paying $2 billion (mostly in overvalued stock, thank you momo dot com 2.0 bubble-chasing "investors"), and frankly we don't care what bears noting is that while the idiocy of Facebook's CEO is still up for debate, the idiocy of the markets is once again beyond a reasonable doubt. Presenting Oculus... Innovative Sciences - a company which has absolutely nothing in common with Oculus VR, and which is up over 4% this morning because... it shares the same name as the Facebook acquisition - the same deep fundamental analysis that lead "investors" to decide that both Tweeter (TWTRQ) and Nestor (NEST) are undervalued.



But that's not all - the Canadian company Oculus Viciontech is up over 200% in the last 2 days...

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MillionDollarBonus_'s picture

Actualy, this makes perfect sense. Brand is everything, and this association gives serious weight to the company's image. In addition, the aquisition adds value to any IP which uses the Oculus brand, boosting tha value of Oculus' intangeable assets. 

LawsofPhysics's picture

"intangeable assets" - comedy gold MDB!!


Remember, when fraud is the status quo, possession is the law...

Headbanger's picture

And actually, you're fucking retarded!

Theta_Burn's picture

And in the same breath, to you, bitcoin makes no sense..

Make believe by association

OceanX's picture

Bitcoin makes perfect sense!

Have you bought or sold a house recently?  Ever hear of docusign?  I sold my house and my ex was in another state, all the paperwork was handled on line.  Never had a face to face meeting with my ex or the buyer for that matter...


That is the esence of crpyto-currency!  Irrefutable binding of a contract! Still yet better, there is no counter-party risk with a crypto-currency since, it uses peer to peer networking.  Ever hear of bit torrent?  (Docusign and others have a central server)

What else, crypto-currencies will become as important to the internet as email ...another intangable asset. You use email, yes?

balolalo's picture

lesson of the day...

BTE - Buy The Echo, bitchez.

duo's picture

Facebook is going to be bummed when the beta units of this come out.

It's a much better picture.

Bangin7GramRocks's picture

I program my algos to buy anything that starts with A. That way I never miss out on the Amazon meteoric price moves.

firstdivision's picture

I hope your logic is sound, and that there is a pedo ring business by the name of JP Morgan-Chase that gets busted today.

Mercury's picture

Presenting Oculus... Innovative Sciences - a company which has absolutely nothing in common with Oculus VR, and which is up over 4% this morning because... it shares the same name


How much longer until this phenomenon evolves into outright Batesian Mimicry ?

Issue a bunch of shell co. penny stocks with names similar to hot tech stocks, load up when deal chatter heats up and....dunk.


In other news: Chinese walled?

JPM pounds the table on WLH yesterday on the strength of a land purchase deal and today they announce a secondary.

Customers are not amused.

PlusTic's picture

No wonder this country (US) is fukked..morons around every corner!

Savvy's picture

It's like watching a B movie.

BlueStreet's picture

Those are the same idiots who will buy Candy Crush.  You couldn't make this shit up if you tried.  

Boomberg's picture

I just put all my retirement funds in Hershey hoping for a sympathy bounce with the Candy Crush IPO. I gonna be rich!

firstdivision's picture

I knew I should have launched a company called King Dynamics, and IPO'd

pods's picture

Just the E trade baby mashing the keyboard.


LawsofPhysics's picture

Where are these "markets" you speak of?

(note: using the term "market" in my book implies a mechanism for true price discovery)

Scoobywan's picture

Isn't facebook's audience trending older?

Maybe Oculus VR will be covered by medicaid someday.

giggler321's picture

+30% of all audience clicks are fake!

Jayda1850's picture

I actually own the developers kit of the oculus rift that is sold on the oculus website. I will vouch that the technology is pretty amazing and it is the closest thing they've come to commercial available virtual reality. However, like all VR sets, overcoming simulation sickness is still the #1 drawback. Hopefully with positional tracking and full HD screens will help.

AcidRastaHead's picture

If corporate value still had anything to do with corporate valuations, this might have been absurd.

Hongcha's picture

Same same x 10 in 1999-early 2000 when there were 100 x more guys with $500 E-Trade accounts ...

DavidC's picture

Fucking pathetic.


Sudden Debt's picture




Cacete de Ouro's picture

Watch Burger King (BKW) trading today as KING floats, I would not be surprised if some idiots and HFTs buy the home of the Whopper.

No one messes with The King!

soopy's picture

The only idiocy is your constant obsession with these non-events.

Spungo's picture

I can give this one a pass because they actually have the same name. Tweeter was just stupid.

NDXTrader's picture

Love how the financial media forgets the volatile aircraft sector when durable goods beats, but sure knows about it when it misses. I'm sure Cramer will be outraged by the futures pump last night on "stimulus bets"

Disenchanted's picture

Damn, I thought this might be the first ever movie review on ZH.

yogibear's picture

It's a Pile on Higher and Deeper mentality. 

All Wall Street needs to do is suck more foreign investors into equities and then pull the rug out and grab the money. Easy as taking candy from a baby. 

juggalo1's picture

While the statistics you showed for other similar companies showed some irregularity, the Oculus chart you posted doesn't show an abnormally high value, or a break above their trading range.  Besides the value of the company may be boosted by the higher profile.  In the world of microcaps any news and attention is a big event.

adr's picture

I'm still trying to figure out how a company with almost no sales and no retail product gets bought for billions. It's also not an exclusive product with no competition. It increasingly looked like Occulus was having trouble making a retail ready product.

firstdivision's picture

But...but...but HFT creates liquidity....

starman's picture

Suckerberg wants to jerk off in virtual reality!

Joenobody12's picture

Someone tell that asshole at Facebook he bought the wrong company.

Winston Smith 2009's picture

Oculus VR, Inc.

1 Sep 2102 - $2,437,429 Kickstarter

12 Dec 2013 - $75 million Andreessen Horowitz Series B venture funding

25 Mar 2014 - Purchased for $2000 million by Facebook

Nah, this isn't dot bomb levels of stupidity, right?

Ariadne's picture

The j??s at FB are doing the same thing the j??s at Google have been doing for years with their pile of public money.

tstraus's picture

During the week in the early 1980's when gold made its parabolic move almost doubling, a company called Scotts Liquid Gold took off in the pink sheets with, as I recall, more than 200%. Of course, the problem was that Scotts Liquid Gold was a furniture polish-- and that was the absolute top in gold for many years.

What is out there I do not yet know, but there is a rising sense of chaos in the world that will be reflected in financial markets. Before economics became its own independent, primarily mathematical science, the study was called political economy for a reason. To assume so blindly that the two streams will not connect at some point is a fools thought process. We are heading for a truly transformative series of events. The underlying turbulence will collapse all social disciplines back into the same soup from which they arose, economics, politics, sociology--a forgotten discipline, from which will arise a new more liberating human social and economic architecture. Getting out of the soup without drowning in it however, for most, will be nearly impossible. Every week that goes by that the illusions of prosperity and financial well being reflected in financial markets, particularly the stock markets of the world, is a week closer to the convergence and collapse.