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passthegravy

06/12/08 7:50 PM

#5964 RE: runninamuk #5963

Assuming the news is delivered in the next week or two, will the timing correspond with the optimal timing of the stock? In other words, did we miss the sweet spot?

runninamuk

06/12/08 7:50 PM

#5965 RE: runninamuk #5963

The delay in funding is doing us a favor technically speaking!

irondog

06/13/08 9:10 AM

#5972 RE: runninamuk #5963

"I want to ride stocks from pennies
to dollars...and that requires patience BECAUSE the timing
of news AND market reactions to news is unknowable, even for those who know..."

You disagree with a common sense statement like that?
Lets look at this, the original PR that started all this
said in plain english...12 million bucks in 30 days.
People on this board and others were saying things like
'wow, someones writing a check for 12 mil'
Now, the truth comes out...the money is coming in 'tranches'
So, the highly anticipated PR will say something about a
tranche of 2 mil or so came in...and more is coming, bla bla
bla.
I would say the market reaction is surely 'unknowable' as
compared to what it would have been if............

downsideup

06/13/08 11:51 AM

#5982 RE: runninamuk #5963

I'm NOT saying news events don't matter or that stocks don't respond to news. I'm also NOT saying you can't apply some timing methods and timing tools in timing the market or in timing trades in particular stocks...

I am saying that you can't use market timing to predict "exactly" when a particular bit of news will hit and drive a stock higher with a high degree of precision. Nor can you predict exactly what the impact of a particular bit being announced will be until it is out there... as how a bit of news is positioned or postured in the release can alter the response. Use really mucked up language no one understands and you'll just leave people scratching their heads. Spell it out in terms of impact on the business, and you get a different impact.

There are predictable market functions in anticipation, recognition and response to news... with responses conditioned by expectations and by how close to expectations the actual announcements hit. Under perform relative to expectations and good news gets a negative reaction. Over-perform relative to expectations, and good news gets a good reactions... a pause to absorb the difference... and a better reaction over time as the breadth of the impact is absorbed by a wider market.

I agree with those posting that news of completing the financing will likely drive these shares higher... I'd agree, too, that you'd prefer to be in before that news happens, but also should have opportunities after the news is absorbed to ride the long term impact...