We Hope All Corporations Prosper Except For Some

A favorite pastime on Wall Street is gabbing about froth, the concept of markets getting ahead of themselves thus setting up for a fall.

One way to reduce froth is to get over the fads associated with those destined to insult and disappoint investors.  For example, Twitter which "couldn't go below 20" broke through that level, then broke through 19 and looks like it will stay there until someone comes along and buys the company.  (The Twitter high in the last year was 53.49.)

Another is GoPro.  Looks like it will be down 21% at the open, under 12 after trading as high as 65 in the last year.   The ghost of Eastman Kodak is probably smiling at a newbie that sells cameras that mount on something.  Can a company be built on advances to the tripod?  These companies, like the one that thinks a $75,000 electric car will be a mass product represent froth at its frothiest.  Capturing the imagination of Joe Public they attract money, money coming out of better stocks.  They set up for disappointment, recruiting new pledges to the Never Invest Again club.  And don't get us started about analysts who downgrade a stock after the debacle like the screen shot at the upper left which moved this morning.  Is that the sound of a barn door?  Marvel at the audacity of saying that a stock you said would go to 90 is now expected to hit 21 and thus will outperform!