LightReading.com reports on Gilder pick rumor -- NUFO
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New Focus Moves on Gilder Rumor
New Focus Inc. (Nasdaq: NUFO), an optical components vendor that specializes in high-power lasers, is getting a boost on Wall Street today, thanks to a rumor that it will be included in the new Gilder Report, which is released tomorrow.
The rumor was picked up on Theflyonthewall.com, a subscription Internet service that tracks stock rumors and news.
At midday, New Focus was up $2.50, to $84.25, in a notably volatile day on Nasdaq. Since the IPO earlier this year, the stock has traded as high as $165.13 and as low as $40.
Technology stocks mentioned in a positive light in the influential Gilder Report often receive some pop in the market -- a circumstance often referred to by traders as "The Gilder Effect."
"We heard it in a couple places," says Christopher Thiessen, a portfolio manager at Metamarkets.com. "It's a company we bought in the past and we like it, so we're using this as an excuse to buy it."
Thiessen notes, however, that he thinks the Gilder Effect has lost some of its luster, with some of the Gilder stocks underperforming.
"If you look at some of the last Gilder Report stocks, we shorted the stocks after it comes out. The Gilder effect is kind of like a one-day thing."
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