Wondering why TWTR is down today? Wonder no more... The Wall Street Journal [7]has seen fit to publish the full unadulterated story of how Reuben Kressel, 66, of Rego Park bought (and then stunningly sold) 500 shares of Twitter in just a few weeks for a 76% profit. "I sold out completely," Kressel warns, adding that he "didn't want to take any more chances." Of course, the brokers love it... "in stocks like Twitter, the retail investor is finally starting to come back," Wedbush's director of equity trading gloats, "for the first time in a long time, retail investors are really starting to act differently." Forgive our modest sarcasm and incredulity but when this is an important business news story, believing that we are in anything but a bubble is akin to admitting to be the greater fool.
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Via WSJ, [7]
Mr. Kressel’s view illustrates the fickle nature of many retail investors who have piled into Twitter during its 182% rally since the San Francisco company’s IPO in early November. Some are true Twitter believers, others invest to make a quick buck. Brokers say the collective power of investors such as Mr. Kressel have played a crucial role in driving shares of Twitter, an unprofitable company, to such lofty levels.
“In a name like Twitter, the retail investor is finally starting to come back,” said Ian Winer director of equity trading at Wedbush Securities Inc., which acts as a market maker in Twitter shares. “For the first time in a long time, I’ve seen retail investors really starting to act differently.”
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“I’m better off taking my chips off the table than getting killed,” Mr. Kressel said. “You know what they say: ‘Don’t be a pig.’”
There's your mistake Mr. Kressel - you BTFATH!! not sell it... but on the bright side - now he has money on the sidelines to buy moar of something else... like Tesla?
As a gentle reminder - what happened the last time the retail investor "acted differently"?
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