Great news! (684% gains in a day?)

Forward to a Friend Having trouble viewing this issue? Click here. Refer a Friend to Energy and Capital.

Great news! (684% gains in a day?) By Jason Stutman | Monday, July 7th, 2014 Great news, everybody! There are still plenty of stupid people left in the market. Now, I know that statement might sound a bit coarse at first, but the fact is it would be incredibly difficult to make money trading securities if it weren't true. But before we get into why that's the case, I'd like to briefly explain what prompted this rant and why I'm being so brash about it. On June 25th, Chinese e-commerce company Alibaba Group Inc. made an amendment to its IPO filing, announcing it would list on the New York Stock Exchange (NYSE) under the ticker symbol “BABA.” No official announcement was made regarding the date of the IPO, but most analysts weren't expecting Alibaba to officially go public until August 8th. Well, that didn't stop the impatient dunces of Wall Street. Following the announcement, a flood of money began flowing into junior oil and gas exploration company Santa Fe Petroleum, Inc. (OTC: SFPI). Why? Because Santa Fe Petroleum used to trade under the ticker symbol BABA. Oops! Despite the fact that Santa Fe now trades under a completely different ticker symbol and on OTC markets (not the NYSE), people still bought the stock in droves, thinking they were purchasing shares of Alibaba. This is stupidity and laziness at its finest. Advertisement Have You Heard of the "Papal Cure" Breakthrough? A groundbreaking new therapy is pulling heart disease patients back from the brink. Better still, it has the full-fledged support of the Vatican. It could give you a longer, healthier, and richer life... And bring you life-altering gains of 10,421% or more. I urge you to click here now for the full details. Nothing New What's most shocking here is that these investors seem to be buying stocks without any consideration for price whatsoever. SFPI trades at $0.0091 a share, which should have been a clear indicator that they weren't in the right place. But no, some people just wanted to own Alibaba because of the headlines. Screw research, screw valuation, and screw looking at the chart; I'm just gonna buy it. This is the mentality that creates bubbles. It's the mentality that makes them pop. And it's the mentality that allows others to profit off those mistakes. What we're talking about here is hype, and there is clearly a ton of it in tech right now. It's nothing new, and it will exist so long as companies trade on public markets. If you've made it this far into the article, it means you're someone who's on the right side of hype. I know this because you've cared enough to read past the headline and to actually take into consideration what others have to say. You're the kind of investor that doesn't want to take a position unless you have all the information first. And this is why I write investment commentary for a living. I know that so long as you continue staying informed, you'll be able to come out on the winning side of the market. In cruder words, I want our readers to profit from stupidity, not be part of it. Advertisement "Octopus" Technology Makes Drilling 8 Times More Powerful This new technology will make America the most powerful oil and gas producing country in the world, toppling the mighty Saudi Arabia. In fact, this technology will boost U.S. oil production to 12 million barrels per day. Most importantly, it will create a new wave of oil millionaires and billionaires as it delivers gains of 890% or more... To get in on this opportunity, click here for full details. Hype and Profit Back in October 2013, a very similar situation to occurred with Twitter's IPO. The company was assigned to the NYSE under the ticker symbol TWTR. Immediately following that announcement, investors began picking up shares of Tweeter Home Entertainment Group Inc. (TWTRQ) — a bankrupt company still trading shares. Valuation shot up 684% in a matter of minutes. I remember joking with a colleague at the time that we should start playing big tech IPOs by preemptively buying shares of non-related stocks with similar ticker symbols. Well, we probably should have taken that a bit more seriously. Santa Fe Petroleum climbed well over 400% on the BABA ticker assignment. Next time you see a high-profile public offering, it could be worth your time to check for a similar ticker somewhere on the market. Of course, there are far more consistent ways of profiting off this kind of blind hype. Headlines send stocks into overpriced or underpriced territory on a daily basis. The key, of course, is knowing where to look. One of the most reliable methods of predicting these sudden spikes in volume and hype is playing biotechnology stocks close to pipeline catalysts such as public data releases and FDA decisions. Mapping out a calendar is the first step to making short-term plays in that space. The next step is understanding the science. Turning progress to profits,    Jason Stutman  @JasonStutman on Twitter Energy and Capital's tech expert, Jason Stutman has worked as an educator in mathematics, technology, and science... Before joining the Energy and Capital team, Jason served on multiple technology development committees, writing and earning grants in educational and behavioral technologies. Jason offers readers keen insights on prominent tech trends while exposing otherwise unnoticed opportunities. I liked this article | I did not like this article Follow Energy and Capital on The Bottom Line Related Articles How to Kill a Password Google's Biggest Threat (NASDAQ: GOOG) Self-Driving Car IPO Recently... Thorium: A Contrarian Investment These 3 Solar Stocks Fight for $5.1 Trillion Payday Can 66 Million Frenchmen Be Wrong? Stem Cells, Idiots, and the Fountain of Youth Take Advantage of $107 Oil

This email was sent to ignoble.experiment@arconati.us . You can manage your subscription and get our privacy policy here. Energy and Capital, Copyright © 2014, Angel Publishing LLC, 111 Market Place #720, Baltimore, MD 21202. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Energy and Capital does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here, including our privacy policy and information on how to manage your subscription.