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for experienced investors / traders only

Submitted by honus on Sun, 12/30/2007 - 06:29
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I've seen a lot of what I'd characterize as misinformation / wishful thinking regarding making a statement to FOX via trading NWS.

I invite those who have experience trading / investing to state their opinions.

Here are my 2c:

Trying to hurt FOX via a stock manipulation of NWS is one of the worst ideas I've heard. It's AWESOME in principle (I really don't want to discount people's efforts, thoughts, and enthusiasm) but impossible (I don't say that word lightly) to execute.

My biggest concerns are:

1. I don't want unsuspecting / new traders to lose money - especially via shorting.

2. I don't want this to backfire. If word gets out that RP supporters are trying to manipulate NWS and the news organizations pick up on it and then the stock price goes UP (which the billionaires can easily make happen) we look like inexperienced idiots.

3. Time and money could be spent much better.

For the record, there actually is some validity to getting out of NWS if the fundamentals change. This might happen if RP does better than expected (hopefully wins of course) and FOX, as the conservative voice, loses touch with its viewers and therefore ad revenues go down. This would be an EFFECT of the RP movement (in combination with lack of FOX coverage), not a CAUSE of this "dump NWS stock" initiative. This would happen over the course of weeks/months/years. Be careful not to positively correlate any near term stock price change with this initiative when it might be due to something as simple as the randomness of the market. On the flipside, even though many people on this site will never again watch FOX, FOX would make changes to regain their legitimacy to get viewers back.

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Submitted by mainah on Sun, 12/30/2007 - 08:18.

you need is enough spooked investors to have this free fall,snowball effect

Very far fetched

Submitted by iiiyraegr on Sun, 12/30/2007 - 07:53.

I am an experienced stock trader and the idea of us being able to make a noticeable impact on the price of NWS for more than a few minutes is completely ludicrous. Assuming that out of the 60,000 of us who participated in the Tea Party, 1,000 of us own $10,000 of NWS each, then that is only $10 Million worth of stock. The average daily dollar volume for NWS is about $50 Million. If we all submitted market sell orders at, say, 12pm EST on Monday while somehow keeping our plans secret, it might cause a 10% dip in price, but the institutional holders and hedge funds would all swoop in for the bargain purchases within seconds and we'd all be the losers. We'd be better off donating what we'd lose to the campaign.