INVESTORS URGE STOCK BUYING SPREE
NET GRASSROOTS MOVE LOOKING FOR ‘BILLION SHARE MOVE TO UPSIDE’
By Brock N. Meeks
MSNBC
WASHINGTON, Sept. 15 — Stock-related chat rooms and Web sites, long the haunt of dubious stock tipsters and market analysis, have spontaneously turned into enclaves of patriotism in the wake of Tuesday’s terrorist acts. “NO SELLING MONDAY! SHOW THE WORLD!” blares one such message. “LONG USA!!” intones another. Call it the “Patriot Rally.”
SMALL INVESTORS ARE posting thousands of comments and stuffing e-mail boxes with messages urging everyone to buy and hold at least 100 shares of their favorite company.
“Help America get back on its feet and memorialize those who died: Buy stock when the market reopens and hold it. If everyone bought just 100 shares we could make America’s stock market soar,” says one such message.
“If every one of us, along with millions of other Americans get in there and buy 100 shares of your favorite stock, we can reach the goal of getting a billion shares on the plus side at the ringing of the closing bell on Monday,” says another with the exhortation: “Pass this along to all your friends and family!”
Even some infamous short sellers are saying they will step back from trying to profit from a market that could buckle Monday.
“I’m sure I could make a lot of money if the world panicked,” Anthony Elgindy, the flamboyant principle of Pacific Equity Investigations told the Dow Jones News Service. “But I’m not convinced that’s a business philosophy I want to employ.”
“My Grandmother bought war bonds to help my Grandfather when he was fighting the Nazi’s, in WWII,” wrote “Inforthelongrun” in a stock touting chat room. “And I’ll be buying 100 percent homegrown U$A companies on Monday!”
The Securities and Exchange Commission announced this week that they are relaxing a rule that regulates how and when companies can repurchase their own shares. By law the SEC is allowed to grant such relief for up to 10 days. The relief waiver came as a result of regulators looking for ways to help the markets stabilize the aftermath of the 1987 stock market crash.
SEC utilizes emergency powers
The SEC said it would set the amount of shares each company can buy, set by a formula that correlates to its average daily trading volume.
Cisco has already announced it plans to use up to $3 billion it has socked way in cash to help keep its share price afloat, if need be.
“Investors should be assured that U.S. markets will function effectively and fairly, and that market and investor protections are squarely in place,” the SEC said in a statement.
And Saturday the New York Stock Exchange, the Nasdaq Stock Market and the American Stock Exchange jointly announced that tests of their respective market making capabilities proved successful.
“Our systems are all go,” said Richard Grasso, chairman and CEO of the NYSE at a news conference Saturday. Grasso also said that the connectivity among brokerage firms passed with flying colors and all markets were expected to kick into trading gear at 9:30 a.m. EST on Monday.
“Our nation has classically rallied around the flag when tragedy hits,” A.G. Edwards said in a detailed research note to investors Thursday. “We look for the same to occur” in the aftermath of recent terrorist acts, the note says. |
