Anyone else see this article? Seems to be to be some poor research, since the Yahoo Site was up an running yesterday but not announced until today!
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individualinvestor.com
TAUB TALK: Two More That Fail the Smell Test
by Steve Taub 9/8/99
Think an alliance with Yahoo (NASDAQ: YHOO - Quotes, News, Boards) would be a good thing for CheckFree Holdings (NASDAQ: CKFR - Quotes, News, Boards), the hard-charging electronic bill payment company?
I would think so.
Yet, shares of CheckFree, which announced its deal with Yahoo before the market opened on Wednesday, are down about a half a buck to $37.50 in late morning trading.
How do you figure this?
Easily.
The time to make the big bucks from the Yahoo deal was on Tuesday, when CheckFree closed at $37.81, up $5.88, or a mind-boggling 15.5%.
There was one hitch, however.
The only way to have profited from this deal was to have known about it before it was made public.
Yes folks, yet another reminder that all investors are equal. Just, some investors are more equal than others.
It's enough to make you scream: 'Isn't anyone running the SEC these days?'
Ingram Micro Smells Too
The same can be said for shareholders of Ingram Micro (NYSE: IM - Quotes, News, Boards).
After yesterday's close, the world's biggest wholesale computer distributor warned that earnings for its fiscal third quarter would miss consensus estimates. It also said that it is searching for a replacement for chief executive Jerre Stead.
Yesterday, however, Ingram Micro closed at $19.31, down $2.69, or nearly 14%.
Today, apparently the investors who were not 'able' to anticipate this announcement are bailing out of the stock, which is off by more than $5, or nearly 30%, to $13.75.
Folks, despite Wednesday's selloff, this one doesn't pass the smell test either.
Oh sure, this stock has been in a free fall since July, when it ran up to the low-$30's, and since December, when it traded in the high-$40's.
And yes, back on Friday regional brokerage Morgan Keegan lowered its rating on the stock to 'market perform' from 'outperform.'
But, obviously that wasn't enough to knock off 36% of the company's market cap in two days.
Let's face it. Despite all of the information now available to the little guy thanks to the Internet, the smart money will always be first to know when it is important enough to be first.
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