InvestorsHub Logo
Followers 17
Posts 2691
Boards Moderated 1
Alias Born 01/17/2007

Re: None

Tuesday, 08/12/2008 4:49:22 PM

Tuesday, August 12, 2008 4:49:22 PM

Post# of 86719
Quite simple. It's pay for performance now. Most of you know how it works. When a company has great news they put it out to any number of players. There is no Reg FD any more. The company lets a certain market maker or hedge know the advance case orders for cognac and vodka. So they come in and load up to move it in advance of the news. They know they win because they will control the bid and ask. They run an algorithm right over the top of NITE and squash them. Most retail will jump up and sell their shares becuase they've waited so long for any movement. You know, "Whew! I better sell above this .50 cuz it could be 6 months again before it gets here." Mr. Hedge just gobbles them up and the retail player stare in disbelief as the stock keep going and going. The company gladly gives up the news because they know it is maximizing shareholder value on the move higher.

Happens all the time. Google the biggest out there on the "pay for performance" plan. Stephen Cohen SAC Partners. Find the Google article where he admits in print that he pays all the time for news in advance so he can control the market.

Just Google Stephen Cohen Business Week

Here's a start:

http://www.businessweek.com/magazine/content/03_29/b3842001_mz001.htm



Doing the work required to bring quality information to others: Rilo787, sneakypeaky, Tirunesh, BillyC49, Coopermun, OldTimer