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- 4 August 2006
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hello everyone...
was just wondering if there is a golden rule or trend that all/most shares follow leading up to an announcement.
Assume the annoucement is supposed to be good news, so no chance of any nasty surprises, so basically it depends on the extent of the good news. with the exact annoucement date set or roughly known....
common sense tells me that , all the day traders will start to get on a few days before in the anticipation of a quick profit and so will invetsors, I also am aware that some stocks even with the best of news will rise for about a day or two after the announcement, and then fall below PRE announcement levels, which I have never understood why..... an example ARH back in OCt 2006, when the annoucement was expected of good news, it shot up to $2.10, once the annoucnemnet came through, it was all good news as expected , it sat at $2.10 for a few days, and gradually dropped to $1.30, it has just recently after 14 months, reached $2.10 again on some other news...
also, would volumes be small to moderate a few days out, with a moderate to high volume say 48-24 hours before the annoucment??? this is what my logic says
this is happening to a stock that I am looking at. but the volumes/sp is not behaving to my expectations.
or have I got it totally wrong???
was just wondering if there is a golden rule or trend that all/most shares follow leading up to an announcement.
Assume the annoucement is supposed to be good news, so no chance of any nasty surprises, so basically it depends on the extent of the good news. with the exact annoucement date set or roughly known....
common sense tells me that , all the day traders will start to get on a few days before in the anticipation of a quick profit and so will invetsors, I also am aware that some stocks even with the best of news will rise for about a day or two after the announcement, and then fall below PRE announcement levels, which I have never understood why..... an example ARH back in OCt 2006, when the annoucement was expected of good news, it shot up to $2.10, once the annoucnemnet came through, it was all good news as expected , it sat at $2.10 for a few days, and gradually dropped to $1.30, it has just recently after 14 months, reached $2.10 again on some other news...
also, would volumes be small to moderate a few days out, with a moderate to high volume say 48-24 hours before the annoucment??? this is what my logic says
this is happening to a stock that I am looking at. but the volumes/sp is not behaving to my expectations.
or have I got it totally wrong???
