Exiting CKCM - earnings jitters

[Unknown]

This thing rocked from 13 to 29 but I think it wil tank after earnings...dropped a buck yesterday.

clearstation.etrade.com/c...trade.com/

Fella on the board has been dead-on for 2 quarters now, said last one was blowout earnings and it was the stock tripled.

This time its gonna disappoint.

I am getting out, in at 13, it bounced of 29 yesterday and lost a buck.

[Unknown]

BJE, lemme get this straight, you make trading decisions based on information you receive from an internet bulletin board?

[Unknown]

I have not followed his advice once, but have followed what he says versus what happens and his insisting that he has inside info.

They got new coverage today so he may be an idiot, but if he is correct for a 3rd quarter in a row I may take one account and use it for an options trade based on what he says next quarter.

I once had 10k on Sonic Foundry and a guy was telling me it was going to zoom. I need to double the money by xmas which was 3 weeks out.  I got nervous and dumped.

The stock then did a 10x, thats 12 bucks to 120 bucks 3 days after xmas.  I would have gone from 10k to 100k.

[manwslohand]

Quote:I have not followed his advice once, but have followed what he says versus what happens and his insisting that he has inside info.

BJE, isn't it the height of stupidity to publicly declare on an open message board that you're using information reported to you as "insider"

[Unknown]

Excellent point.

[Unknown]

Exactly so he is either:

1) A lucky kook
2) Someone who lives with or knows an insider and wants to feel important - in the know
3) Just another tool who thinks he alone can drive the stock price up or down by blabbling on a message board.

How are they going to bust him when its just a pretend screen name on a board?  Some people noticed his earnings projections were dead on and all of the press releases he called were dead on too and wondered if he would get busted.  When it tanked to 8 on rumors he was saying 'blowout boff earnings - easy money' the entire week before they did 3x earnings quarter over quarter and the stock tripled. The previous quarter he said look out below. I went back and looked at all his posts.

I did a ton of research on this sector and stock. I posted here about it and some RF guys said it was too early to invest in RFID, however I think by the time everyone agrees its 'time to get in' the good money will already have been made.

[Marvin C NiceGuy]

'Insider' information.
if thats what you mean ?

There have been several cases to that end. One involved someone who accidently overheard (at a hotel swimming pool) insider information, and made money promptly acting on it. The 'loudmouth' was convicted, but not the listener....

Now, if you're asking "is it smart" ?? thats something else altogether.

My personal rule of thumb is to keep <5% my assets in any one investment, and if any one rises dramatically I sell the original stake (ie 'take the money off the table').
Hmm - I wonder why so many Investment phrases come from the Gambling World

[Unknown]

Because it is exactly that - gambling.

I am betting it will go down monday after earnings even if they are good because it has roared from 8-29, a lot of momo traders will bail and I think it will fall.

I fully intend to plow the money back in and put it to work once it drops.

But I might be making the wrong bet, if it takes off without me I am tubed.

[The Original Dinosaur]

Back in the 1960s, several people made a living by listening to elevator talk in Wall Street high-rises, selling what they heard, and/or trading on it.  Brokerage firms finally wised up and issued "no shop talk in elevators" ukases.

In another interesting case, an engineer at a computer manufacturer in a Southwestern state (yes, that one), made a small killing by trading options after correctly surmising that management's assurances of no layoffs were false.  Poor bastard, not only did he have to give up his trading gains, but he was laid off.  And did a short stint at Club Fed.  A terrible injustice, IMHO.

[Unknown]

He was an idiot to trade options. Options markets are relatively low volume, the first thing the SEC does when checking insiders is to look at options volume.