The email said it qualified on Chuck Jaffe’s stupid investment of the week but went on to refute that claim stating its a christian based family game and based on the number of books sold under the same title, it should do pretty well. At the time it was trading at $5.20. Since then its up 40%.
Yes, thats 40% in 5 days!!! While I didn’t buy any and don’t plan to chase it either, I have been following it with interest. Why is the stock going up on relatively no news??
Yes, its getting a lot of media coverage but the company isn’t releasing any news.[a product soon, but thats been known for a while] It kind of reminds me of the tech bubble days.
The email got sent out to probably around 100,000 investors.[my estimate of the circulation based on indirect data from the sender.] If only 5% or 5,000 people bought $1000 worth of stock, thats $5 million worth of stock, or about 5 million shares[or 40% less depending on when they bought it]. The average volume is about 30,000 shares, but in the past week its been over 100,000 per day. Thats half a million dollars worth of stock every day!!!
So did the email cause the stock to go up or was it other reasons??? Not that I care either way, but if I can find out definitely, I can definitely take advantage of such emails in future!!!
Lets see how it plays out in the next few weeks. After the readers stop buying will it fall back to $5 or does it still have some real strength.