Investors, Turn Down the Volume

In rock ā€™nā€™ roll, turning up the volume is not only welcome, but is often outright called for. While headbangers may want the volume cranked up, investors may prefer to have the volume set on low instead. High volume signifies a large amount of interest among investors. Interest often is inversely related to mispricing. Put…

 

Observations About Investing in a Low-Volume Stock

A few months ago, I bought a low-volume stock, Oregon-based Willamette Valley Vineyards (WVVI). I had seen the companyā€™s name on a screen of liquor stocks I occasionally run and was prompted to take a closer look when the company sent us a prospectus for a preferred stock offering. (I think my wife put us…