***Off Topic*** Of course, the viagra approval was built into the stock price. The FDA approval was definitely a non-event as far as Wall Street was concerned. The approval was announced this last Friday, 3-27, and the stock ended the day up about $1, but it also traded down during the session, as well.
Trying to set a price based on fundamental data, for an average investor, is basically an exercise in futility. Not because the average investor is 'dumb'. But because the average investor learns nothing that Wall Street hasn't already known, in far greater detail, for days, weeks, months or even a year in advance.
As far as 'smart money', my definition of smart money is the company insiders who load up on free options, and then sell them for thousands, hundreds of thousands, millions, or tens of millions of dollars.
Lou Gerstner of IBM got what, 2 million additional options when he just renewed his contract?
Do you have any idea what that could be worth? The options are probably good for 10 years or more. If the stock doubles, that's $200 million for those options alone.
Regards,
Larry |
