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Re: Bobblehead post# 508

Friday, 10/01/2010 2:00:30 PM

Friday, October 01, 2010 2:00:30 PM

Post# of 90887
Fundamentals ultimately should drive a stock but there are usually other eliments other than just what the company itself is doing. Companies usualy are valued on revenues and profits, but many smaller companies may have valueable intelectual property such as a patent or pending FDA approval(biotech stocks) that can be speculated upwards as a future value of a company.

But there are a lot of behind the scenes that takes place as well such as...

There are news letters that will hype up a stock. This happens a lot in penny land where pump n dumps are frequent. Pennystockchasers was recently taken down by the SEC for penny stock pump n dumps

There are insiders loading early up or dumping before news comes out. This can affect a stock before anything fundamentally is public.

There are naked shorters or shorters that profit from selling shares to drive down the price.

There are message boards and twitter that quickly transfer rumers or news faster or slower.

Keep your eyes wide and open in this digital age of technology. There can be elements you may not be seeing influencing the price of a stock.
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