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Microcap & Penny Stocks : ICVI (now MTEI) -- Ignore unavailable to you. Want to Upgrade?

To: jhild who wrote (9920)	6/9/1998 2:31:00 AM
From: LegalBeast	Read Replies (2) \| Respond to of 11850

<<< The company that is doing the buying goes DOWN and the company that is being bought GOES UP. Really is that the way it works? I thought that when an acquisition increases shareholder value then it was reflected in the stock. I seem to remember the word accretive being used in those situations where the acquiring company receives immediate benefit in earnings from the acquired company. Certainly when the acquiring company overpays for an asset and say dilutes shareholder value then you can expect that the stock will go down.>>> Hey .. all due respect to logic, but watch the mergers on the big board. That IS the way the market reacts. I did not invent this phenomenin, I merely observe it and offer it here. I challenge you to look at the big mergers that have taken place over the last weeks or just about any time in the past. The day of the announcement, the one doing the buying goes down and the victim goes up ... I know it is illogical, but it just does ...! Then 2 to 3 days later, it goes back to where you might expect it ... Want another phenomenin? Try the fact that a stock split causes a runup after the split to often as much as the stock was before the split, and a reverse split goes the other way running down the price. I dunno why, I merely observe that it does and trade accordingly.