I guess there is rumor and there is rumor. For instance, I would put more credence in FON than any in CTRX b/c 1) source of rumor; 2) history and 3) strategic value. I don't mean to be so stuck up about this. The thing is, I ve spent enough time in the small cap. Every crash seems to provoke increase rescue fantasy! While one can indeed factor takeover into one's investment strategy, one is not being realistic if one harbors any white knight scenario, even if there is little basis for it. It is counterproductive.
Now, if one, like yourself, thinks there is a bottom out candidate, I can see more in this kind of decision process.
Obviously, one wants to know, if the stock moves, if the stock doesn't move, if there is reason or if there is no particular reason at all --- if one is a FA person. OTOH, the TA people simply make the assumption they are such outsiders that when the thing moves, it is too late. They simply follow trend but also watch their back. Either way, Yaoo! rumor simply doesn't carry too much water. If one needs any convincing, think PAIR!
best, B |
