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| | | Look For This Subtle Sign
Long before the advent of the Internet and the availability of information 24/7, investors relied on seeing, hearing or meeting the leaders of publicly traded companies as a major component of the due diligence process. Knowing and understanding how important face-to-face meetings or presentations were (and still are) to the investment process, company management teams routinely schedule a number of institutional and retail investor roadshows, and try to get on the docket for key industry conferences.
Finding out when and/or where a management team will appear was occasionally used as a lever to drive stocks higher. The prevailing thought was that the more the team was "out there," the more likely the shares would come under accumulation. In the pre-Internet days, conferences were less frequent and thus the stocks sometimes made big moves higher ahead of a given conference on the off-chance that some secret announcement might be released.
In some cases, today's investors are made aware of these kinds of events far in advance, so they don't carry the same weight as they once did. Still, if an investor notices that a team is making a concerted effort to reach out or present in a short, condensed period of time, it should be viewed very favorably.
To read more click here >> or visit http://www.thestockjunction.com
The Word on "The Street"
Until recently, one unintended consequence of the big rise in the stock market had been the lagging performance of listed stocks below $10, and especially those below $5 per share. That's not to say that a number didn't do well this past spring. Still, their performance did lag behind.
One proof of this circumstance was easily witnessed by viewing daily new highs and lows. For what seemed to be weeks on end, the number of new highs among these lower-priced small stocks paled in comparison to their higher-priced brethren. However, as the market has been fighting against headwinds in the past week or so, lower-priced small cap and microcap stocks have enjoyed a resurgence.
We view this as simple risk/reward. Those investors who play in this market sold off the larger-priced stocks that outperformed and sought out stocks that had not yet generated outside gains and may in fact appear to have better value.
To read more click here >> or visit http://www.thestockjunction.com
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