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What is the story with company announcements?

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Rob_ee

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19 December 2006
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I am fairly new to this trading caper and get somewhat confused with the way announcements are released to the masses.

Often I see unexplained price gaps up .. that is no news release.. about a day or two in advance of anything new.

Is this just a cross your fingers type thing and hope or do different sections ..like say stock brokers... get news in advance?

Today for example GPN after a subdued opening shot up some 15% in the afternoon ... had a look later and saw the announcement ..time stamped after 6pm on the Etrade screen .... so how did those who bought early know?

Pressumably the price will gap up tomorrow morning when everybody else who sees the spike or reads the report will simply have to get on before they miss out.

I have been somewhat confused ... I see this type of thing continuously .. EXT is a prime example where a lot of this seems to be happening.

IS it a case of ETrade being very slow to release news or am I just being ignorant due to lack of knowledge of how the market works?

Rob
 
The Mint Man said:
speculation & insider trading always help
Click to expand...
Insider trading happens every day of the week on the ASX.

I am pleading the fifth amendment on how I know this, but believe me, it is true.
 
take a look at a stock called NMS - relatively little news for months, except for that which needs interpretation, often by those with substantial experience and industry knowledge, yet the price has nearly tripled in just a few months, despite also tripling of the shares on issue.

ramping - yes
insider trading - possibly
speculation - no doubt

this stock used to leak like a pipe with lots of holes - but the lack of news doesnt scare folk these days......go figure.
 
Not much you can do about it.Just nod that it happens and accept really.
 
Trading on the hope of an announcement or even off a current announcement will not lead to consistent profit.

Its my belief that this is where most start and where most end their career.

The old adage
Buy the rumour sell the fact.

However learning how to read the pack can be very profitable.
 
BOL is a good example.. yesterday up 5% on X4 ave volume.. This morning, ann of good half year result.. Seems I was the only one who didn't know about it..
 
>>Trading on the hope of an announcement or even off a current announcement will not lead to consistent profit.

>>Its my belief that this is where most start and where most end their career.

Well 5 min before pre-open and there are already over 8 Million on the buy side above yesterdays close of GPN

This came up as a buy on my MS exploration last night but I am somewhat reluctant to jump in just yet in case those boys part of yesterdays action decide to ofload.

I often read in books how the professional shearers denude the sheep of their wool ..or money if you like.

I don't mind getting the occasional clip but this is to risky for me.

I hope those who bought yesterday and at open have a good day and the price goes up.

I can always enter later or find something more sedate

Rob
 
there are ways of accessing certain information before it is released to the market.

www.doir.wa.gov.au

this website allows registered users to access and view the current status of mining tenements in western australia. simply register then you can use the tenegraph program to view particular tenements and status.

this way you can find out if tenements have been granted or rejected before they are announced to the market.
 
Lert said:
BOL is a good example.. yesterday up 5% on X4 ave volume.. This morning, ann of good half year result.. Seems I was the only one who didn't know about it..
Click to expand...
A good example is MPO, went up a couple of days ago on no news, then got a couple of bits of good news today and shot up even more.
 
Unfortunately insider trading is rife with many of the listeds. Perth in particular, is such a small town so information spreads easy. What may start as an inside piece of info (drill assays) quickly morphs into a hot tip from a friend or something. Sooner or later everyone up and down the Terrace knows something is brewing.

Then there are people that just are better equipped to know things than the average Joe. Say a Geo that is doing some work for company x notes an ore body is likely to run into a lesser known neighbouring company's tenements. Also, do you really think the aircraft doing EM surveys only begin recording over their client's tenements? Like hell! The pilots/operators are looking for something else they can buy into.
 
What I would like to know is how you can tell when a company is due to release quarterly/ half yearly reports etc.? Is there somewhere on the ASX site I can find out about this?
 
chops_a_must said:
What I would like to know is how you can tell when a company is due to release quarterly/ half yearly reports etc.? Is there somewhere on the ASX site I can find out about this?
Click to expand...

Dear chops,

It may be worthwhile emailing the ASX and asking them. In my experience , on a few occasions I've known an announcement was in the offing, but not what it was , and still missed the rise or fall in price. Its one of the reasons I stopped looking at announcements and stopped trying to 2nd guess the market. I just use technical analysis for entry and exit points and fundamental to give me a range of stocks to keep on my watch list.

A few years ago I held PMM Portman, they were being taken over by an American mob Cleveland Clift or Cliffs. I'd let the offer documents go, was busy and was late in putting my acceptance in. I rang a nice lady at the Takeover bureau for PMM, who assured me I could fax my acceptance. This was 5.45pm. I just happened to go into the ASX site, at about 5.49pm and saw that AMP had bought a blocking stake,. I didn't fax .
The price nearly doubled in 6 months from the t/o price and I got out, more ass than class.

That is my experience with announcements.

Garpal
 
An interesting example is UTO: On 19 Feb the sp rises 20% on higher volume than previous weeks, and voila on 20 Feb an announcement. Coincident
 
chops_a_must said:
What I would like to know is how you can tell when a company is due to release quarterly/ half yearly reports etc.? Is there somewhere on the ASX site I can find out about this?
Click to expand...

Here is the link to the ASX site that lists the upcoming (and recently released) announcements including half-yearly results, ex-div dates, AGMs etc.

http://www.brr.com.au/partner/asx

DG
 
It seems to go on and on .... are there clairvoyants out there ????

Last night MS exploration came up with only one candidate in the recent new highs on big volume increase .... AGM 5 times volume on previous and 12% increase on the day ....

So I check out to see what the announcement was for the frenzy and was surprised (NOT to see nothing at all to account for it.

So predictably the chartists who spotted it on their nightly scan simply had to get on and it opened higher, followed immediately by large dumping (pressumably by some who bought yesterday).

Sure enough out comes the annoncement the next day confirming a upgrade in resources.... good news indeed and instant profits for those in the know ?

I wonder if Mr Darvas made all his money this way .... wait for the suckers to drive the price up, and then buy pressumably sound companies after the dip.

I didn't buy for the very reason I 99% expected the above scenario to play out ...maybe a candidate for later.

Learning all the time

Rob
 
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