Here's a scenario you've seen before: It starts on March 15th. In the absence of news related to the CC deal, GZF's stock gets hammered, dropping by 40% before noon EST. There is widespread selling among naive and experienced investors alike, but naive investors sell out of irrational panic; experienced investors sell to cut their mounting losses.
Then, some MMs and truly cagey investors with money to spare stock up on shares after the initial bloodletting, picking up a few million more at the 40% lower price. The following days, the stock bleeds a little bit more. Then, a couple weeks after March 15th the CC deal is announced, GZF is on the map, a new website debuts, and GZF is propelled into the news headlines. Volume jumps into the half million mark per day, and the stock hits 3 cents.
I know you've seen this scenario before. Who's the wise investor in it?
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Posted by: dm8582
In reply to: kermit4karate who wrote msg# 107569 Date:3/7/2006 11:05:33 AM
Post #of 107575
It's not as if all investors are naive. But realistically, selling with no news makes sense from a profit perspective. That's what we are here for. Holding while the price is getting driven down is just not wise. Its unfortunate that the price would drop, but maybe if these companies cared about the pps they would get out news in a timely manner. So the way I look at, it is their fault, not investors
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