Forum Archive Index - January 2001

["Douglas Stewart" <dougstew@ihug.co.nz>]

Warner, have a look again at Frucor's daily chart for Friday before it disappears early on Monday morning.  The announcement was made at 1.25pm but the shareprice didn't begin to budge until 2pm.  In other words the announcement was regarded by the bigger players as meaningless - they neither bought nor sold - it was only when smaller investors (after the standard 20 minute news feed delay) began to notice, read and act that the price began to move.  There was then an hour of buying before selling began to reverse the price rise.

 

"On that day in FEB, I will be at the computer waiting but ATM I am happy to wait as that announcement has made me wary of softening the reality of earnings. "

 

Warner, will you also suffer from the 20 minute news delay or do you have access to real-time news?  If you don't, brokers and professional investors will be buying for 20 minutes before you've had the chance.  In saying this, I'm surprised that a professional(s) did not buy up a few shares following Friday's announcement in order to sell down into the inevitible buying surge from small investors after the 20 minute delay.

 

I guess in the abscence of a real-time news feed in February you could become a chartist and use the real-time graph and watch for any ripples on the upside to tell you which way the results have gone.  If the results are good, though, are you not concerned that you could be caught chasing the price up in a frenzied buying burst?