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Given the number of subscribers to the Foolish premium services, there is always going to be a bump after a new recommendation from everyone racing to place buy orders. Over the years, SA and RB have played around with different release times but there is always going to be a number of members who jump on the new Recs blindly, without taking time to read beyond the name of the company or the ticker symbol. These members are trying to time the market by beating everyone else to the punch and I think it's a foolish way to invest.

TMF certainly does not encourage this approach but is not in a position to prevent it. My advice to you is to not worry about any bump. The price usually falls back to planet earth after a few days or weeks. Instead, I would encourage Fools to take the time to read the coverage article, join the company's premium board discussion and to try to better understand the company's business, management and growth potential before making their own investment decision.

In fact, there's a reason why neither RB nor SA offer buy-around pricing, because for long term buy-and-hold investors, neither the purchase price nor the purchase date are nearly as important as how long the position is held or the price at which it is sold. When you make a well-researched investment in a quality company, in 3-5 years or more, you probably won't even remember what was your purchase price. That's certainly been my experience.

It is also possible that if the company's stock is thinly traded, it takes fewer buy orders to drive up the market price than other more actively traded companies. High demand and fixed supply leads to higher prices. It is also possible that there were external factors coincidentally driving the market price.

As to the casual theory that there is a pre-recommendation run-up, I would posit Fools who claim they have data are misreading it to support their accusation. Any market price run-up immediately prior to a recommendation is normal and coincidental market volatility.

What I can say with absolute certainty is that nobody, not inside TMF, no "special" member Fools, only those TMFers necessary for the selection process, have knowledge of the recommendation before the official publication time. And those necessary TMFers are unflinchingly committed to ensuring your paid right to receive that recommendation at the time of publication and no sooner.

While recommendations are posted to the service's website precisely at 11am ET (Rule Breakers) and 1pm ET (Stock Advisor) on Thursdays (top end services publish on their own schedules), it still takes time for the queue of emails and text messages to be sent out. It just isn't practical to expect instant notification, nor is it relevant for Foolish investing.

I've heard the complaint that TMF doesn't "fix this". As I have laid out, it is not something that can be easily "fixed" and it's not even a problem if you just listen to the Foolish advice to not rush to trade but to take the time to read the recommendation analysis, research the company, check out the company's Premium Community discussion board and make informed, reasoned and proactive investment decisions. If you do that, then this whole discussion becomes immaterial.

Remember, Fools invest in companies, not markets. We act with intention rather than react to the market. I would much rather put a company on my Buy Watch List and wait for the market to present a discount opportunity (odds are that it will) than invest in a company before I was ready, even if that means never opening up a position. That said, I will not avoid investing in a company when I am ready, even if that means getting in at a higher market price. It is not the time of investment that delivers long term (3-5 years or longer) gains, but the time invested.

Who urges Fools to take to heart the Foolish philosophy that it is more important that you get into the game strategically than being first in line or sitting on the bench waiting for the right time to get in...

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Ticker Guide: The Walt Disney Company (DIS), Intuit (INTU), Live Nation (LYV), CME Group (CME), MongoDB (MDB), Trip Advisor (TRIP), Vivendi SA (VIVHY), Mimecast (MIME), Virgin Galactic (SPCE), Axon Technologies (AXON), 51Jobs (JOBS)
Disclaimer: This post is non-professional and should not be construed as direct, individual or accurate advice
Disassociation: The views and statements of this post are Fuskie's and are not intended to represent those of The Motley Fool or any other sane body
Disclosure: May own shares of some, many or all of the companies mentioned in this post (
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