JacobH
Joined 15 years ago
Joined 15 years ago
If an insider knows a stock will yield him 10% profit and has a month of time to buy stocks, even if the daily volume is 500k shares. They can gradually buy shares at 20k/day, and once that news becomes public and the liquidy goes up they can sell off all of their shares in one shot pretty much. And people just just got news of the information would think that their stock has a 10% upside, but since someone already beat them to the 10%, they aren't going to get anything.
I keep hearing realestate and low rates, so that may easily be an outlet for the money to go to. I guess we'll see.
He actually went as far as to tell investors beware of investors not from the valley. So people don't steal in the valley as they do anywhere else?