Good announcement = SP fall?

[surelle]

I may be crazy, but can some-one please explain why, every time there is a good announcement, the SP seems to fall??????
Are the profit takers cashing in and hoping to drop the price to then buy in again at a lower price or what the.....

 

[wayneL]

Re: announcement

Buy the rumour, sell the fact

 

[Julia]

I may be crazy, but can some-one please explain why, every time there is a good announcement, the SP seems to fall??????
Are the profit takers cashing in and hoping to drop the price to then buy in again at a lower price or what the.....

Surelle:

You're not crazy: I'm sure many of us have shared your frustration.

An announcement may be "good", but often expectations were that it could have been better so investors register their disappointment.

Also, as Wayne's quote says, the content of the announcement has often filtered through via various sources prior to the actual ann being made.
Thus the price just prior to the ann has already factored in the results the company actually announces.

Julia

 

[dutchie]

I could not understand that either - good announcement - down goes SP (hate to see what happen if news is not as expected!!).

OK if the market has already factored in the good news, which has not been announced officially yet, then they raise the price to where they think the share is worth taking into account that unannounced news. Then the news is announced and is as expected. Therefore why bail out of the share if it is living up to expectations!

Don't understand it but am getting use to it.

 

[IGO4IT]

dutchie,

Youre 100% right, same thing just happened to CUO.

Before announcement of 125% more copper was $0.029, after announcement its $0.026

I was holding & waiting for announcement but seems like since NOT ONLY ME but the whole world knows the good news before it comes out, price kept going up regardless of the ann. being official & started also going down again!!!

Amazing but real!!

 

[surelle]

I hear exactly what you are saying, and thanks for your wisdom Wayne, but it seems highly suspicous to me that when the investors decide that the SP has reached its resistant level (and could go higher) , the players of the game bring it down (by dumping volumes - and scaring of the speculators) and then they buy in again at a lower price and then wait for the run again...
Could that be the case??