What has Lady Gaga got to do with Episodic Pivots.
It is all about surprise.
Two years ago very few people had heard about Stefani Germanotta. And then she surprised everyone with her first album The Fame. Market discovered a rising star and today she has eclipsed several well established pop stars.
Obviously she knew she would make it big. This is what she told Cosmoplitian in latest interview. “I had a boyfriend who told me I’d never succeed, never be nominated for a Grammy, never have a hit song, and that he hoped I’d fail,” she recounts. “I said to him, ‘Someday, when we’re not together, you won’t be able to order a cup of coffee at the fucking deli without hearing or seeing me.’
Why has Gaga become such a big hit, because she surprised everyone.
Like in real life there are surprises everywhere. There are surprises in the market. Little known companies appear out of nowhere and surprise the market and then the market responds to that surprise by driving the price higher. That is the basic concept behind Episodic Pivots. Surprises on completely unknown and un followed stocks cannot be predicted.
Every year the stock which makes the biggest move in a year will be the one which surprises the market most.
Look at this example from 2004 of Boom. Boom had a Lady Gaga kind of debut in 2004.
First Earnings Acceleration
Neglected stock . Very low volume, float prior to earnings day. A big earnings surprize started this move...
First time is the charm
Second Earnings Acceleration
Third EP
IBD kinds jump in. Makes it to IBD lists.
4th EP
Analyst, grandmas, and everyone else knows about the stock
5th and more attempts
Everyone knows about the stock. So where is the surprize...
6th EP
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