That's a great point to expound upon, chartinator. Buying on news more often than not, has turned into a loss for me, and I'm sure, a good many others.
The two very reasons you pointed were why, also. New investors need to understand that it is press/news releases that offer the company the single most effective way to sell new shares and create new funds for the 'next step' in their desired courses.
The news brings a substantial heightened attention to their company, and they 'seize the moment' when doing so. If it is not the company selling 'into the news' then it will be prepared shareholders doing so, from the same 'heightened attention' the company will be receiving.
Every news release has a value ranging from 'death drop' to 'the moon' and/or all points in between. Even the most experienced traders occassionally lose money on what seems to be good news (most likely from the ensuing dilution of new shares).
Unfortunately, there is virtually no way of knowing immediately, which way a stock will go, on what may appear to be good news. Only by experience and observation can anyone get a better 'feel' for a non-dilutive great PR.
On news that I choose to stand back and watch, I continually remind myself, "profits not gained, hurts less than losses sustained" and losses can come VERY quick and easily.
I, myself, prefer to buy according to what PAST PR says, usually long after the hype has dissipated and the pps has settled back down to reality, being prepared for the next time news comes out.
to make a million bucks over night" 
