We are poor, but we have a big heart. That could unfortunately make us take wrong investment decisions based on appreciation for a beaten up puppy stock. Today I will tell you a (sad) story about Linux distribution editor Mandriva. It is a very small company, traded on the “Marche Libre”. Wich is like the OTC market in US… From which we proletarians should keep ourselves very far from…
But I have a big heart…Mandriva made the most proletarian Linux distribution on earth “Mandrake”. Mandrake was considered a linux distribution easy to install for everyone. It arrived to be the second most downloaded distribution after Red Rat.
One day Red Hat took the controversial decision to transform its distribution into something very expensive, for the rich and the great companies. At the same time Red Hat made a lousy distribution not mantained for us, the poor. But we the poor, don’t like to be treated like that. So we were ready to shift to Mandrake (now Mandriva).
What did I do as savy democratic, proletarian investor? I stared using my hardly earned dollars to buy Mandriva stock at around 3 dollars each. The company was very small. As soon as I did that two disastarters happened. The company started bankrupcy procedures so my stock was frozen for a year, and the giant Hearst brought them to court for illegal usage of the name Mandrake, owned by theis copyrightet little magitian.
Mandriva came out of it, changed several managers and started actually making money. The stock climbed to 8 dollars. What did I do? I bought some more.
But the new management is very shortsighted, started to concentrate on enterprise software only, so the Linux community switches to Ubuntu and the company looses money again.
The stock arrived arrived around 5 so the proletarian got scared and sold half of it with great loss.
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