When Not To Follow Stock Market Trends
Certain traders on Wall Street, basing their views on stock market trends, had decided that BRUCE’S book value and earnings indicated that the stock’s price should not be more than $30 a share. Therefore, they had started to sell the stock short between 45 and 50, confident they would be able to fulfill their bargains by buying it back at a price much nearer 30.
They made a grave mistake following these stock market trends, because there was one factor they did not know about. A New York manufacturer named Edward Gilbert was trying to oust the Bruce family from control of the company. He and his associates were trying to obtain a majority of the 314,600 shares outstanding which the Bruce family owned. It was this move that had rocketed the price. The volume was terrific, and following the stock market trends, more than 275,000 Bruce shares were traded during a period of ten weeks.
The short-sellers who had so misjudged the market jostled each other to push the stock to dizzy heights in their frantic efforts to follow the stock market trends and buy it.
To read more, go to the Stock Market Trends website by clicking on this link.
Last modified June 14, 2007Author 309 > has blogged 217 times
