I’ve been following this whole Microsoft fiasco for the past year, though not closely. I’ve noted that in the last couple of weeks that the value of their stock has been dropping steadily along with other tech stocks. What I want to know is, if the addage goes to “buy low, and sell high” would it be in one’s best interest to invest in Microsoft right now? Will they rebound? Could someone make a killing buying relatively cheap stock in a reputable company while they are going through a low point and cash in when the value increases again?
Sure they could. That’s how they do it. Right at this moment, Thursday, people are buying tech stocks again cause they are cheaper. But never can tell about later today. They are over valued.
Hey, buy 10,000 shares of some company then go on the news & tell everyone to buy that company! When the price skyrockets, sell. You just made a mint. Notice people doing this all the time ?
Or even better (for you, anyway), send out a spam to eight million people offering this “hot stock tip”. Then sell when enough of the rubes who’d normally be forwarding free-Nikes or cookie-recipe emails go to E*Trade instead and buy into the stock.
It’s called a “pump and dump”, and the SEC really, really likes it when people inform them about it happening.
Wasn’t that what they looked for during that tylenol poisoning thing a few years back? They looked for someone buying large shares of it when it hit bottom. Clever.
Don’t know about the Tylenol poisonings, but they did go after a doctor who claimed that Nutrasweet caused cancer. Turned out the doctor had put options on Nutrisweet’s manufacturer.
To explain, a “put option” is basically a bet that a stock will go down. If the stock sells at a lower price than the put, you can make money.
“What we have here is failure to communicate.” – Strother Martin, anticipating the Internet.
Its monday am, the market is up a little.
I thought it would be a blood bath because its tax day & everyone needs their money to pay for that, so a big sell off.