I think you misunderstood. Fred is suggesting that Mark is smart for cashing out at $37 because the price is now $31. He also thinks that if Mark buys stock at

I think you misunderstood. Fred is suggesting that Mark is smart for cashing out at $37 because the price is now $31. He also thinks that if Mark buys stock at $31 that will be a strong enough signal to send the price to $45. That seems a bit of a stretch to me but it's just a hypothetical situation, not a statement of fact.