Well, the first thing to understand is the stock price is a function of supply and demand. Period. A stock that has nice fundamentals attracts buyers. A stock that has a small public float and good promoters finds buyers. As an example, look at most internet stocks. People are captivated by the potential of the stocks. They forget the another reason they have gone up like a rocket is that there is only a tiny amount of the total stock that has been issued is in public hands. So extreme demand + small supply = amazing prices.
I can't comment on the stock freeze thing since I don't trade Nasdaq stocks. In my experience, most stocks that are halted for investigations come back dead (if at all) since where there's smoke there's usually fire.
As for stocks going down on great reports, you have to look to see if there was already a huge run up to the report. If everyone has already purchased on anticipation of good news, thinking that people will buy when the news is released and the stock might pop for them to sell into, there's no way the stock can go up unless the news is *unexpectedly* good, since the buyers are exhausted. You can use the same logic for beaten up stocks to actually go up on good news, since everyone has already sold in order to avoid being there when the announcement comes. In general, only surprise good or bad news moves the market.
As for the questions on fundamental analysis, all I can say is that analysts play games with their numbers, the same way technical indicators say, "it's close". I don't use either approach, and I'll defer to someone else on the questions regarding EPS, etc., because that's not my expertise. My only comment in general is that P/E are higher in a good market, and lower in a bad one.
Hope this helps. |
