Visibility and Why many times THAT is what moves a stock's price.
Companies can report record earnings, or announce an outstanding new acquisition or product and that quality company's stock might not move up at all.
In fact it might even drift down lower in price. In my opinion, there MUST be a FOLLOWING of that stock and to get that, the company and it's stock must get Wall Street recognition. Without Wall Street Recognition even GREAT News will have little effect on the price of a stock.
How then does a company get Wall Streets attention? PROMOTION!
Then, when Wall Street does perk up and take notice, they will be
pondering Past News and factor that into PRESENT News, which will
spawn PROJECTIONS.
Perhaps with this volume increase, the effects of such will soon
become evident.
Where is the small investor in this panoramic?
I suggest the small investor falls into at least 3 categories.
1. Some see what they believe the Street will eventually see and thus are positioned.
2. Some see potential but are skeptical to the belief that the Street will see what they think they see. (likely " would be investors" until the TIDE Turns, at which point they might become momentum buyers of the stock.)
3. Some see potential but refuse to acknowledge it for fear of being
wrong. (These may silently risk investing, then, if it turns out a big winner, they knew it would all along :)
If not, then they likely would never admit being invested...............
Do you fall into one of these categories of the small investor?
I'm in # 1 and I again suggest anyone re- read post #'s 272 & 276 for a to the point summary of a view I personally hold.
Malcolm |
