MSTR Price could have been jumping up like crazy as it is supposed to but the institutions off loading crap load of shares worth billions is what is causing the price to be stuck. What happens next is hard to say. Once the institutional whales have off loaded their billions and if the BTC continues its bullish trend, MSTR price may recover at a faster rate but as of now it is all speculative and undetermined. Heavy selling going on blocking price to move above 185-198 range as I see and understand so far. ATB Next earnings report will be not only crucial but also critical impacting market mind set to pump MSTR or dump MSTR.
MSTR This stock is not made for buy and hold. It is however a terrific stock to trade. I know many of you instinctively want to buy a stock and hold it through good times and bad. And God love you for that... I'm a disciple of Benjamin Graham and Warren Buffett, so I admire the inclination. That's a great strategy for value investing. MSTR is not a value play at any price. Never has been, never will be.
Commodity stocks are not made for holding, they are made for trading and/or rotational investing as market sentiment and macro economics change. Blindly holding this stock is like walking blindfolded with a piece of exposed dynamite through a candle shop. Not wise. A stock like MSTR has to be monitored closely for entry and exit opportunities as market conditions change. It takes work and critical thinking. Blindly holding it will get your portfolio blown up.
MSTR No BTC purchased last week tells you just about all you need to know: when the shit hits the fan, this company is screwed and can't raise money. If they can't raise money to buy BTC when it's having a rough week, then they can't raise money to pay dividends (in a like market). If they miss their dividend payments or if they are late paying them, it's game over.
Saylor likes to brag that the demand for the digital credit market is exploding. Yet he couldn't sell a penny of it last week because they too (the preferreds) were crashing. It's all a big lie Saylor is telling, and his lies work as long as bitcoin is cooperating. But when the market gets bad, and it always gets bad at some point, then his shell game is revealed for what it is. You won't see a press release today from Saylor saying nobody wanted his products last week. Just deafening silence and the hope that the faithful won't read too deeply into it.
In the banking world, what MSTR experienced last week would be called a stress test, and a very minor one. There are a myriad of rules and simulated tests that banks have to meet or exceed in order to prove their solvency should times get rough. MSTR failed miserably at a slight stress test, just like they did back in the spring when bitcoin had a correction. Let that sink in, and then realize how bad things can truly get in a real bear market.
There is a reason the S&P rated MSTR as B- junk credit, one step above bankruptcy. If you put all your money (or any money you think you might need again someday) into STRC or any of their credit products, you are taking a tremendous financial risk of losing your entire investment. It does not matter if you successfully receive a few dividend payments because that will not make up for losing all your principal balance. The dividend could be 20%, but if you can't get 5 years worth of them before everything blows up you are screwed.
MSTR Friendly suggestion: If you are interested in making money off of BTC movements, you may be much better off and safer trading BITX (if not BTC directly) compared to MSTR. MSTR is a next level manipulation game which is really much harder to understand and manage. See Logman posts to understand better I guess. Disclaimer: Personal opinion only, sharing out of good intent to help, based on understanding certain market structures as best as I can so far. ATB
MSTR Price could have been jumping up like crazy as it is supposed to but the institutions off loading crap load of shares worth billions is what is causing the price to be stuck. What happens next is hard to say. Once the institutional whales have off loaded their billions and if the BTC continues its bullish trend, MSTR price may recover at a faster rate but as of now it is all speculative and undetermined. Heavy selling going on blocking price to move above 185-198 range as I see and understand so far. ATB
