ARB Priced for recovery unfortunately for most26 Jun 2022 11:41
The downside is still ahead.
ARB should have sold at higher levels to other suckers rather than taking on debt. Terrible choice really, lets use an analogy to put it into perspective.
An explorer found a plant that he could grow and he grew loads and loads and loads his friends did and their friends did and they grew so many plants that they had vast amounts. They took these plants, lets call them tulips, far and wide. They said they are so rare and slowly started to sell them into the local populations at higher and higher prices. People started to trade them between each other as well. Everyone making more and more money on the transactions that they gave up their businesses, sold factories and gave up work to trade them. Then one guy realised that he could do the people selling them. He just needed to start producing them as well!
In this village the producer kept stocking up on tulips growing more and doubling his supply and not taking profits and kept his tulips increasing over and over. The rich in the village were so smart they bought as many tulips as they could. The poor in the village couldn't afford a single tulip to be able to do the same so begged the tulip producer to sell shares in the company. The producer obliged and pocketed some of the money as profit and sold shares in his production company and was boastful in the village about how rich everyone in his company will become and more people in the area worked hard and threw money at the producer. The producer took on lots of debt to increase his production but he didn't care the value had gone from 60,000 per tulip to 50,000 and knew he was so smart he kept borrowing and producing and not selling any. Unfortunate down the price went to 20 so the year he took to double his tulips had in fact lost him a lot of money with debt and lost value of the tulips.
Eventually he sold all of his tulips to the village idiot for $1 who planted them all around the village to simply make it look pretty. All the villagers who bought tulips at 60,000 looked out at the village idiot and laughed themselves to sleep at night before eventually turning into tears at how stupid they had been.
The original growers and their friends now had bought lots of land and factories and were producing real things and selling them to the local population at inflated prices, making them work harder and harder just to survive.
Ask yourself where in the story are you? which part is your role?
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