I’ve weighed in on the stock market numerous times before. I still believe, and always will believe, that the stock market is Ponzi scheme designed to defraud ‘investors’ (greedy people).
This story exemplifies the gigantic scam behind the stock market: There’s a single New Jersey deli doing $35,000 in sales valued at $100 million in the stock market
With yearly sales of (averaged) $17, 350 for the past two years, the ‘stock value’ of this delicatessen is a whopping $100 million dollars. Clearly, more then a few people are being taken for a ride, but you can’t blame the company alone, ‘investors’ are buying up truly stupid ‘stocks’ (all over the map) right now, hoping to make a big return.
So how in the world could a small brick-and-mortar sandwich shop with paltry sales be valued at $100 million? Even during the pandemic closure, the ‘stock value’ (scam value) tripled in price. With 2.5 million shares, I value these stocks worth just .00007 each. This doesn’t even qualify as a ‘penny stock’.
Hometown reported more than $600,000 in expenses last year, up from about $154,000 in 2019. The company also reported a net cash gain of $2.2 million from financing activities, such as selling stock, in 2020.
How can “selling stocks” increase the value of a company? Nothing is being produced (except greed). No investments are even being made, no improvements in the company. But the scam is clear – claim you’ve got something to ‘sell’ despite having very little to actually show for it, then sell a lot of ‘it’ (greed), and make a ‘profit’ off of the stunning ignorance of your ‘investors’.
There are some very, very stupid people throwing their money around. This is a sign of collapse dead ahead. When stupid money follows stupid ‘marketing’, a reckoning will be due shortly.
If this takes on a domino effect, and I suspect it will, not only will all these people lose their shirts, but so will everybody else.