FWIW -
Winners turn into turkeys
Shares of 8x8, a provider of long-distance phone services over the Internet, have doubled this week, while rival Deltathree has advanced 84%.
To money manager Andrew Abrams, they could be this year's examples of the Thanksgiving-week bubbles that crop up in the stock market and quickly fade.
If history is any guide, Deltathree and 8x8 will give up their gains next week, Abrams said, when the pros return to work. Thanksgiving-week surges, he said, are mostly driven by individual investors who seize on hyped stocks.
"If there's a story around and people are desperate to trade, they'll find it and pile in," said Abrams.
Many professional traders and money managers are out during Thanksgiving week, leaving the field to individuals, said Abrams.
Deltathree rallied 43% Wednesday and 8x8 soared 79% after Tobin Smith, a newsletter editor and TV commentator, recommended 8x8 in an interview with Forbes magazine's Web site.
Next week, when a full complement of traders and investors are back at their desks, will be the true test of hese stocks, said Abrams.
Bloomberg News
Originally published on November 29, 2003
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