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Re: AgBullIt post# 50213

Sunday, 02/15/2004 10:59:16 AM

Sunday, February 15, 2004 10:59:16 AM

Post# of 396422
As for your other question, Front loading and pumping are often tied together such as when the big buyers at the much lower prices are ready to get out they will try to pump up the stock, almost always timed around the the release of news, and then as the strength from the news builds and is reinforced by their pumping, they dump their massive numbers of shares for a nice profit. Thus, you will often see the share price drop shortly after the initial rise stimulated by the press release. The front loaded traders are out with nice profits and us new investors are left holding the bag because we were so anxious to jump in on this positive sentiment they built up and take their shares off their hands, 8>(.
I am always concerned about whether or not I am going to be the stooge when I buy a stock around a press release - be careful! This is a very sly ploy and the pros have so many advantages in such situations. The only DD that I know that would give some warning of such being set up is to look at the volume/price indicator, IF your charting programs have it. Also, you should look at the history of the way the company's share price behaves around release of news.
IF anyone else has other DD that might expose such ploys, I would be greatly interested.

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