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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 77.27-0.7%10:07 AM EST

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To: Lizzie Tudor who wrote (63631)4/19/2003 7:08:51 PM
From: Stock Farmer  Read Replies (1) of 77400
 
Lizzie, when two events occur, (like options are issued and the stock goes up) there is often the possibility that they are related.

However, if the stock goes up by more when options are not issued, and for no readily apparent reason, we might ask ourselves whether this same unapparent reason was also in effect on the day that stock options were issued and the possibility that if they hadn't been issued that the stock would have gone up higher. Or in other words, that stock options might actually have been bad news, just not as bad as the other good news in the background.

Or maybe the market really doesn't care.

More likely it is the reporter who cares. The one with an angle to prove or an axe to grind. A biased slant based on his readership, mail, or maybe even something to do with his girlfriend's sister's husband's son's company and angling for some nookie tonight...

One day we might even read: "Stocks surge in wake of sunspot activity". Both events occurred. The relationship is suspect.

If you want to ponder a real relationship, it's an established fact that the number of defects in a large software product correlates directly to the use of certain specific characters in the fully commented source code. I'm not joking. The more times you see an "e" the more likelihood there's a bug in there.

John
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