<<the cook in the cafeteria that heard the CFO' exclamation or lack thereof, the valet parking boy catching a phrase between two executives getting out to lunch, or as in Sabrina, the Chaufeur>>
Bu Zeev, these people have no financial muscle with which to move the stock (even if there were thousands of them).
A manager with whom I do business runs a LOT of money in a couple of funds, and he explains the pre-accouncement movement thing as follows. A while before earnings, he calls his contact inside the company and engages him in conversation about issues other than the upcoming release. What he's listening for, however, is whether the general tone is upbeat or downbeat. In his words, "if the CFO is happy as sh*t, I hold and/or buy; if not, I stand aside or sell." And when this guy buys or sells, there's enough stock in play that the price definitely moves. I therefore believe that most of the pre-announcement moves are the result of general temperature-taking by the institutionals who are running the big money. Not chauffuers and gardeners betting their credit card limits on overheard info.
Regards,
John |
