I know I have a bit of “conspiracy theorist” in me but isn’t it obvious that *somebody* knew last week that PortalPlayer (Nasdaq: PLAY) would be acquired by Nvdia today. Here’s the chart, which is straight up 20% since they reported earnings and so-so guidance last week:
[...] The insiders and bankers leaked this merger, but they are human and it happens 99 percent of the time. Trader Mike calls it and the footprints of the cheaters should be easy to track. I think the SEC really cares about this stuff, mainly because it is way easy to catch. [...]
I’m just really a casual observer of most of these stocks, but I see at least one of these “somebody knew sumthin” every month …
Just another reason that TA trumps all…
:d
Nice how the market stopped bidding PLAY up right at NVDA’s pre-arranged buy-out price. To me THAT is the most amazing part of the “somebody knew somthing.”
Here’s another good one. I actually caught part of the short squeeze on this stock in one of my rare day trades, but this is too good a “who knew” to pass up.
http://stockcharts.com/h-sc/ui?s=PRZ&p=D&yr=0&mn=6&dy=0&id=p45278689837
http://stockcharts.com/h-sc/ui?s=PRZ&p=D&yr=0&mn=6&dy=0&id=p45278689837
The stock went up from $1.00 to $1.38 in the three days before the earnings came out. BooYah! Extra $0.40 on the day of earnings. Shorts getting squeezed, which was why I was watching it.
Bill,
I see these type of moves all the time.
So true Duru… I’m not holding my breath for an SEC investigation though!
Yeah, when I see these about to happen, I just wanna get my share of the loot if I can … it’s obvious the markets are played by insiders and manipulated to some extent, and it’s just as obvious that part of the value of TA is spotting that action.
It is so easy to catch these guys if they want.
Nice IPO at $20. That is the joke of it.