If a stock attracts the attention of day traders is that a good thing or a bad thing?
On the face of it it sounds like it should be a good thing, the simple thought process being that if a stock with sound fundamentals gets picked up by the exuberant hordes that will throw more fuel on the fire and give much more impetus to any runs in price. However on the downside, does this have the effect of unprising the more stable holders that take profits selling into the strong run and move on elsewhere and you now have a stock held by impatient day traders who throw it back and forth ad-infinitum, pushing the price up and down, preventing serious investors from taking an interest and thus ultimately keeping the price down?
So - if you've got a stock on sound fundamentals with the expectation that it will over the years show real returns due to generating initial profits and/or ongoing profit growth - do you prefer that day traders don't find out about it or do you want them on it? Or does it not really matter one way or the other?