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Twitter is twisted.

June 17, 2014

I put an order to buy 500 shares of Twitter when the share price decides to roll down about $10.00 to its $26.00 per share IPO. Am I testing the water? Not really, I know that the twisted state of Twitter in the next few quarters will get it down below $30 again, buy I am not sure that the share price would eventually get all the way down to its last resort support level. Such phenomenon is rare in an American stock market.

I have additional reasons besides boredom with the market right now why I placed an order to buy T at a ridiculous price, one is that there is less risk in putting an order to buy at IPO unless Twitter collapses and there is a no chance of that. Being twisted doesn’t mean being on the verge of collapsing. It means exactly what the word says – confusion, mixing rolls at the top, etc. CEO Costolo meddles with the rolls of COO and CFO instead of improving his own. He fires people left and right as if they screwed up the balance sheet and not he. Jack Dorsey the founder chairs a aboard in transition, too weak to lead or advice and too important to ignore. Die hard investors push the share price pass $37.00 for passion and no substance, so when the next quarter arrives the gap between predicting earning and actual earning will be too wide to bridge by excuses and a few heads will roll or twisted minds may turn neurotic not being able to accept what is happening and what could have been. Twitter is the most overestimated success story and the most underestimated potential success story today. The only reason I have a foot in the door is because I can see Facebook coming to the rescue and buying Twitter (the pair will be awesome together). Without Facebook to guide it Twitter will continue to play twisted management games until it is bought out or gets a new CEO. Great! Investing is a boring game without human incompetence at play. Right now Twitter is an exercise in futility when CEO Costolo thinks he know what to do and he doesn’t. Mr. Costolo, there are 2 CEO’s right now in the field that you can learn from how to run a great company, call Marissa Mayer or Mark Zuckerberg.

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