We have all been there, I certainly have. I bought a stock I really thought was a winner, like the perfect first date, it looked good, it felt good, it sounded good, it smelled right, and most of all it acted right. Even when it came to paying the bill, she paid. The bill of course was the earnings report. Earnings were great, the chart looked good, the fundamentals looked great, it had an order book of new contracts in a booming economy, an industry leader delivering a good service. Yet when the excellent earnings were reported, beating estimates no less; the stock plummeted by 50% in one day.
I guess my free news sources including Routers and other sources saw me as the last drop off point for their baggage. Did you know that unless you pay for the premium services offered by Bloomberg and Reuters you receive the news with at least a 30 minute delay? On release of the earnings the company decided to issue more new stock to the market, the stock price had quadrupled in the previous 4 months to over $2 and the future was rosy, yet my delay in news hurt me. When this charlatan of a company decided to issue extra stock to raise capital for one of its new mega projects it issued them at 50% of the value of the stock available on the market Jonathan Schacher
. This immediately involved carnage to the stock price. In fact the price although eventually recovering, has again slumped to under $1.
I was not playing the news, the news played me. However there are those that play the news with some success. The problem with playing the news is it is not hard and cold facts it is feelings, interpretation and an abstract appreciation for how the public interprets news events.
How often does it happen that when a good earnings report is announced the stock falls? Too often! Why? There is a saying on Wall Street that you “buy the rumor sell the news”. That’s great if you mingle in the rumor circles that might pay, insiders, employees, good buddies with the CEO. However for us mere mortals we might not have these advantages. I have also heard of too many rumors that have backfired, tips from a friend in the industry, the nod from the supplier to a new startup company with a bright future. Apart from being illegal, insider trading of this nature especially when second hand is completely unreliable. Latest in equity news points an arrow towards the recent outpours in the equity market as the country received equity inflows in several major sectors like housing and real estates, services, telecommunication, automobile and construction industry. India equity news is abuzz with the latest economic trends which have breathed a sigh of relief in the recent times as the recession is finally beginning to cede. However, the global crisis is still not over, despite tae fact that European countries have strengthened their economies and have signaled to the world that the good times are back gain.
Transacted on the basis of National Stock exchange and Bombay Stock exchange, the two major stock indices, the Indian equity market has strengthened a lot in the recent times and the recession has provided it with the requisite overhauling. As per the equity news India, the Indian equity market presently offers to be the most lucrative and prospective platform for investors across the globe as the Indian stocks have caught the experienced eyes of the long-time and mid-term investors.
Envisioned to reap in maximum benefits through the Indian equity share, many an investors have invested already to make their fortune as a number of companies like the Tata Tea, Britannia, to name a few, pose to be a promise of a bustling business for the Indian share market. Besides, a number of other leading business houses offer equally beneficial stocks for investing in Indian Equity Market, which as per the equity news, are the fruits to be ripened soon. Foreign investors find it very convenient to trade in the Indian equity market and that is the reason why the foreign investments have seen a whopping rise in the Indian market of equities and have led to its dynamic success. Thus, as the equity news state, the Financial capital markets of India have seen an encouraging growth even in between he turbulent economic times owing to the balanced blend of domestic and foreign investments. No wonder investing in Indian equities is becoming a profitable business with each day.