I attribute the price increase to the favorable mention on CNBC rather than a conspiracy in which some investors knew in advance of the press release. Do you have reason to think differently?
Well, how about there are 4-10 analysts on CNBC every day, and all of these analysts talk about their favorite stocks, and recently about 20% of these analysts are talking about internet-related stocks, and the internet-related stocks almost NEVER get the kind of reaction that BWEB got today. In other words, if today's BWEB move was due to this analyst on CNBC, why don't other small internet stocks show similar extraordinary jumps when they get mentioned? Who was this analyst, anyway? I didn't see the interview, but analysts on CNBC don't generally move stocks day-to-day any more than posters on Silicon Investor.
And I don't think there is a conspiracy, it just looks very much like BWEB may not have adequate controls over information flow. Perhaps the big move at 3:30pm was unrelated to the press release, but the timing makes me suspicious. In small companies like BWEB, it is generally VERY difficult to keep big announcements secret.
And don't get me wrong, I like today's move very much. But at some point in the (hopefully very distant) future, if the stock drops 50% in the final hour of trading, and no one seems to know why, and then the company preannounces bad results after the close, you'll understand why today's activity makes me suspicious.
Elroy |
