Corporate Domination: The JCK Dilemna by rambodike |  |
NEODAQ - It seems that it’s been a while since we've seen the infamous JCK
below 100. It’s been over the 500 mark for almost 3 months now, an unprecedented
mark for a stock. While many shareholders have dumped their coveted shares of
this NP cow, some desperate day traders still dawdle with its unstable chance
for some quick NP, (maybe needed for a codestone, needed to pay for Training
School) JCK's run dominating the Neodaq Index may soon be over.
For those who don't know, JCK stands for Jacko and Sons Painting Ltd., which
is the dominant Neopet paintbrush business in Neopia. Neopian investors who
invested in this stock long ago are now reaping the benefits of their decision,
with JCK never going below 100 since the month of Storing last year! That seems
so amazing because no one has ever held such a position for so long on the charts.
To the casual observer, it may seem like a usual occurrence, but not for those
who follow the Neodaq trends. It’s almost an anomaly.
JCK probably isn't highlighted as much for its work on Neopet Paintbrushes
as it is for it's potent domination of the Neodaq Index. When you are painting
your beloved Poogle with a vibrant Checkered Paintbrush, you have JCK to thank.
On the contrary, when you are I was searching on the Shop Wizard for a nice
Christmas Paintbrush for my Eyrie, a lot of refreshing set me back a pretty
80,000 NP! I thought, "Who is responsible for this travesty?"
Now I know. I can thank JCK.
But, I need not complain about the steep price for a paintbrush, because I
think that, even in the summer, Christmas looks great on my Eyrie. (Especially
in contrast to Red) Thanks to the extravagant tastes of the average Neopian,
the paintbrush business is a big one. Big Prices. Big Demand. Big Share Price.
Can you really call wanting to make your pet look less boring and more cunning
(unless you get a Plushie or Baby Paintbrush) extravagant though? Its all in
the NP, my friends. It would less of a luxury if the average price of a Neopet
Paintbrush was around 4000 NP.
Its not all about the stock that will go down in Neodaq history as the most
profitable, (at least for a time) though. Its also about the cornering of the
paintbrush market. JCK happens to be the only Paintbrush Company in Neopia meaning
they handle Neopet Paintbrushes AND Petpet Paintbrushes. The sales are great,
which bolstered JCK early in its publicly traded days, and the shareholders
helped it along. Paintbrushes, being one of the most expensive and rare items
in Neopia eschewing the Hidden Tower items, bring in much for JCK and Petpet
Paintbrushes, not always being in existence, have helped even more. But, many
people who buy paintbrushes and other items regularly are people who invest
in Neopian companies heavily. After the bankruptcy of BOOM!, SSGS, and others,
much hard-earned invested money was lost. Easy equation here: Less money from
stocks = Less sales of paintbrushes. Easy, right? This is the first bad sign
for JCK.
As always, hindsight is 20/20. While many lucky Neopians have bought and furnished
entire Neohomes (probably with gold walls) with their earnings from this giant,
many, such as me, have to settle for substantially smaller gains. The investor/corporate
relationship may be as important as the company’s success with their merchandise.
Since the stock went over 500 most of the thousands of shareholders sold everything
they had of it and put it in the bank or behind training or what have you. This
breaks the investor/corporate relationship, therefore taking what could possibly
be BILLIONS of NP out of this company's coffers. The effects of this can certainly
be catastrophic. . The company may maintain its price for a while, but it WILL
fall as a result. Sometimes, it will tank and we'll lose it all together. Good
example: SSGS.
The instability of a company with such a high share price and shareholders
who are selling at an astronomical rate is inevitable. With the miracle of the
stock rising to almost the 600 mark comes the consequence of its unsightly demise.
The systematic decimation of Jacko and Sons Painting Ltd. may not seem exactly
imminent, but it is going to happen.
Is this a sure-fire sign of the company falling down into the abyss to join
the ill-fated BODA? Or, is it just a little drop, in which it may maintain (or
you could say regain) the confidence of Neopian day traders? Only time will
tell The company is bracing for a day in which the stock loses 200 NP a share.
Many things could happen. If the acquisition of a new CEO in the company occurs,
that may send them in a completely different direction than the one in which
they are currently going. (It seems to be working pretty well) A scandal. Day
traders growing intensely wary. The whole thing could go up in a BOOM! (Pun
intended) JCK has dipped below 500 in this month of Relaxing. Just like that,
the whole company could be brought to its knees and back into competition with
its main competitor, Kacheek and Sons Landscaping, or KSON, which is currently
trading at only 12 NP a share. They don’t play the paintbrush game, but are
in the same category. That way the rivalry will be more even, and, as they say,
may the better Neopian Company win!
Could this hard evidence and more flimsy theory be of the company falling
down into the abyss to join the ill-fated BODA? Or, is it just a little drop,
in which it may maintain (or you could say regain) the confidence of Neopian
day traders? Only time will tell. And time is fickle.
So, in closing, two old sayings that seem to haunt lumbering giants everywhere
(especially the latter):
"What goes up, must come down!” and “The bigger they are, the harder they
fall”
|