Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
Today was an unusual day for HGRD... a favorite of Doc Miller, and now gaining size in my own port.

This AM it was off an incredible 9% on no real news at all.

It hit bottom at 5.29 and then slowly started what looked like a "dead cat bounce".

However, at 1403H this dead cat came back to life and jumped to an unbelievable 6.04!! It went from 5.34 to 6.00 in 3 minutes!

Looking for news to explain this odd behaviour, i found this:

TheStreet.com Stocks Under $10
Making the Grade
1/30/2006 2:03 PM EST
By TSC Investment Team
This play on health care information has a history of delivering solid revenue growth. More


(You have to register for their "Stocks under $10" service to see more.)

Obviously there is more to TSC (TheStreet.Com) influence on the market than "Cramer's Wild West Show"!!

The interesting thing to me was the "Tsunami Effect" on this stock...

Nobody was buying and the stock was languishing at unusual lows until the TSC "Stocks Under $10" story broke.

I have no idea why this would occur... seems that if there was foreknowledge, there would have been an unusual amount of buying ahead of the "news".

I'm not upset, as i used the opportunity to buy up a fair amount... but i am puzzled at the activity today.

Any ideas? Anyone? Anyone? (Ref. "Ferris Beuler's Day Off")


Print the post Back To Top
No. of Recommendations: 2
OK, i think i just answered my own question:

Institutional buyers or TSC insiders knew about the story and liked it a lot but couldn't actually buy until the story broke... so they held off on the trigger until the story actually broke... even though they already knew the story.

Here's why i think this... the chart shows heavy buying (over 230,000 sh!) in just the first 3 minutes. It would take the unknowing reader much longer to absorb this information, analyze the company, and make the buy than 1 to 3 minutes... even if he got the email and read it at exactly 1403H!

Another mystery solved. My work here is done.

;)

Print the post Back To Top
No. of Recommendations: 0
my guess is that there were one whole lot of stop loss orders picked off today

I think they are death to the investor in volatile small caps
Print the post Back To Top
No. of Recommendations: 0
Here's why i think this... the chart shows heavy buying (over 230,000 sh!) in just the first 3 minutes. It would take the unknowing reader much longer to absorb this information, analyze the company, and make the buy than 1 to 3 minutes... even if he got the email and read it at exactly 1403H!

Your joking right. They are betting on a hot tip and the knowledge that the tipster has a demonstrated ability to move the stocks price.

In essence they are betting on their quick response time and nothing more.

B


Print the post Back To Top
No. of Recommendations: 0
I agree. It was likely just people trying to play their quick responses then the day traders tried to jump on once they saw the unusual activity trying to get in ahead of the next set of orders (assuming they believed there was a big buyer..)
Print the post Back To Top
No. of Recommendations: 1
I agree. It was likely just people trying to play their quick responses

Thanks for the replies, everyone... but really saying it was just fast daytraders doesn't explain all the strange behaviour... precisely, the drop before the news.

Can people be so "fast on the draw" as to get their orders in the SAME MINUTE that they RECEIVED their email newsletter... without waiting to actually read the newsletter headlines, digest the materialin the article, read the article whatever... 3 minutes???? Unbelievable.

Sorry... i just can't buy it. I think there were people "in the know" and the reason it dropped was that those people stopped buying in the morning, holding their orders until exactly 12:03 PM when they could buy without being accused of insider information.

Of course, it wouldn't be the first time i've been wrong. Precisely, it would be the third... but it seems to explain all the odd behaviour... and Occam's Razor declares that the simplest explanation for all the facts is the best.

UB
Print the post Back To Top
No. of Recommendations: 0
Occam's Razor declares that the simplest explanation for all the facts is the best.

That may be the case, but it does not necessarily follow that insider trading or conspiracy is the simplest explanation or that all the facts are in evidence.


Can people be so "fast on the draw" as to get their orders in the SAME MINUTE that they RECEIVED their email newsletter... without waiting to actually read the newsletter headlines, digest the materialin the article, read the article whatever... 3 minutes????

Sure, why not? There is no rule that says people have to understand what they are buying. See a good headline (read in a few seconds) and buy a few thousand shares. That shows up as activity on day trader screens and they jump in. A bit of a cascade happens and you end up with what you observed.

Similar debates have occurred over the so-called "Hidden Gems pop" when thousands of shares are traded within minutes of the HG newsletter release. Some have claimed that the pop starts before release of the newsletter, but that turns out to be inaccurate display of the actual purchasing.

Finally, I'm not saying insider trading doesn't happen. However, one shouldn't be so quick to claim it as the cause of an apparent trading anomoly wihtout more evidence.

gebin
Print the post Back To Top
No. of Recommendations: 1
Can people be so "fast on the draw" as to get their orders in the SAME MINUTE that they RECEIVED their email newsletter... without waiting to actually read the newsletter headlines, digest the materialin the article, read the article whatever... 3 minutes???? Unbelievable.

Yes, they believe if they buy first and then read (or not) they will benefit from the sheep who read then buy. I don't see what is so difficult about this for you to believe.

Get yourself a stop watch and watch Cramer's show. Listen to the MOUTH and watch the ticker it takes seconds not minutes.

You don't actually have to travel that far from home, as there is also a little phenomenon known as the Fool affect.

Same principal different sheep.

B




Print the post Back To Top
No. of Recommendations: 0

Yes, I'm familiar with the HG pop... and the Cramer effect.

The reason i questioned the "pop" this time is that the newsletter ("Stocks Under $10"-from TSC) is new and therefor i wouldn't expect it to have the same reputation as a pop generator as HG or JCrammer.

Thanks for the counterpoints.
Print the post Back To Top
Advertisement