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Strategies & Market Trends : Analysis Class for Beginners

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To: Arthur Tang who wrote (768)4/19/1998 5:41:00 AM
From: Arthur Tang  Read Replies (1) of 1471
 
Story stock, who is following it?

Story stock that has a large stockholder base is the one you need to follow. How can you tell? Annual reports may tell you the exact number of stockholders they have.

TSX went bankrupt and reemerged many years ago with 750 stockholders. Then they got lucky and sold 50% of their products to TCI. TCI picked up a large stake in TSX. Stock went from $1 to ~$20. When TCI slowed down last year, TSX merged into ANTC on a pooling of interest basis. ANTC is also partly owned by TCI. TSX had trouble finding all their stockholders to vote on the merger.

Fortunately, a thinly traded stock such as TSX had TCI as a stockholder. Otherwise, any story will not have any effect on their stock prices.
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