Sunday, August 13, 2006
Moving up
Some Sunday ramblings.When I do appearances on ROB-TV, I have made it clear that I don't like to talk about the impact on stock prices. I can talk about industry fundamentals, but the stock market behaves in ways that I describe mathematically in terms of second derivatives: the price rises based on people believing that other people will believe the company is a winner. As a result, stock analysis is often a behavioural science. Comments?
Sometimes, the market responds to news with an immediate jump in the stock price. For example, look at Rogers price rise on August 1.
What I don't quite understand is what has been been driving TELUS stock over the past week. It is up 10% on the week and about 20% in the past 3 weeks. Are people trading on rumours (or, perhaps inside information) about an income trust, or other fiscal engineering? I suspect it has to be more than the news of TELUS' union firing its president. The reaction seems too gradual for the rise to be due to the August 4 announcement of financial results and raising the outlook.Thoughts?
Update:
Sorry for the delay in having today's posting available. Due to a problem with Blogger, postings were not getting published on Sunday morning.
I try to have fresh content each morning. I'll be writing more about network-based computing later this week.
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TELUS, Rogers, Blogger
Posted by Mark Goldberg @ 8/13/2006 09:15:00 AM 
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