When rumour is stronger than fact..

It amazes me sometimes that some shares get chased up sky high on unfounded
rumours ...when the buying momentum is so strong even die hard disbelievers can find it
hard to resist the urge to buy no matter how ridiculous the rumour may sound to the
critical mind...after all you begin to ask yourself ..how can so many be fooled into buying
in such large quantities...then again history has shown this phenomenon to happen time and
again...

That said, lots of traders and short term traders love a good story ....most do not
bother whether a change of ownership actually enhances share value ,they are more keen
to ride on the momentum before the music stops..Conversely this same group would not
even give a second look when factual news like improved results are announced...this value
enhancing news is normally deemed not "sexy" to the market..It would take a gigantic dividend
payment before the share price improves marginally...

All is fine with this rumour based chasing but what can be worrisome is that the rumour may be
"planned" to spread like wild fire and induce or lure innocent and naive retailers into the surging
shares only to be burnt severely after the denial...Millions can be made or lost within days
depending on which side of the fence you are sitting on....and obviously you would not want
to be on the wrong side...

If you not sure, perhaps it may better to be safe than sorry....