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Picking stocks based on market trends or news announcements

Posted on 12/1/23 at 1:55 pm
Posted by yankeeundercover
Buffalo, NY
Member since Jan 2010
36419 posts
Posted on 12/1/23 at 1:55 pm
So I’m wondering how experienced traders would handle something like this:

I found an interesting article about, effectively, micro robots that are complimented by living organisms/cells and *may* have medical application.

If I wanted to learn more about this technology in hopes of investing in ABC Micro-Robot Parts Co., how would I start finding said company? Or parent company to target stocks that would be affected by advancements in medical application of “micro-robot cells”, which would absolutely be interesting enough to find out who to invest with or buy into.

Basically, where would one start to look into the information in this news article?

News Article

TL;DR?: If you read a cool article that outlines a new tech, how would you find out who to invest in to take advantage of getting in early on a stock based said news article?
This post was edited on 12/1/23 at 1:57 pm
Posted by Dead Mike
Cell Block 4
Member since Mar 2010
4058 posts
Posted on 12/1/23 at 2:05 pm to
The issue you might have is that if you are reading about this technology in a publicly available medium, then many other potential investors may be aware of the same information. Therefore, the potential growth implications for any of the prospective companies may already be priced into the current share price. Or maybe there is some other reason for uncertainty/hesitation that other investors are aware of, that is not covered by the article (for example, expected roadblocks to FDA approval).
Posted by yankeeundercover
Buffalo, NY
Member since Jan 2010
36419 posts
Posted on 12/1/23 at 2:16 pm to
For sure. But I’m asking how a savvy trader might look into this with more of a deeper dive and get to the actually company that’s responsible

Vs.

The public’s first impression to invest in something that isn’t actually the main puppeteer that isn’t readily available without doing some research or investigating that the majority of the public won’t do.

There’s got to be value in articles posted in the public space.

I read an article years ago about the raw materials that go into semi-conductors and microchips and drilled all the way back to HBM (Hudson bay Mining Co.) which owns a bunch of mining companies in Taiwan and SE Asia.

So in that case, the public would see Xhouyang Zang Yu Ltd. as the mining co. on the ground but is ultimately by HBM (which took a bit of research and digging)

Which lead me to a press in conference that was supposed to announce new partnership in Taiwan and I bought in at $1.51.

But that was kind what I’m talking about, but it kind of just clicked how to drill “up”
Posted by Thundercles
Mars
Member since Sep 2010
6135 posts
Posted on 12/1/23 at 3:07 pm to
You're asking for advice on further researching a very early discovery found at public universities. This is nowhere close to a financial opportunity.

Any company you're looking to get this early on will not be taking money from retail investors-- they'll be getting hundreds of thousands to millions in seed funding from institutional investors that will take years to possibly get a return on, and they'll likely never get it back. If you ever listen to the guys explain that life, they'll make 10 bets and lose everything on 9 of them and hit on one, and if they do that 100 times and get 10 winners then 1 makes it very big.

You're chasing very hard and very unlikely money with some certain losses built in. The people that do invest in these companies have teams of analysts trawling through news and forums and actively solicit candidates for investment to come to them.

This post was edited on 12/1/23 at 3:54 pm
Posted by Motownsix
NOLA
Member since Oct 2022
3274 posts
Posted on 12/4/23 at 7:58 am to
Buy the rumor and sell the news.
Posted by RidiculousHype
The Hatch
Member since Sep 2007
10956 posts
Posted on 12/5/23 at 1:05 pm to
quote:

TL;DR?: If you read a cool article that outlines a new tech, how would you find out who to invest in to take advantage of getting in early on a stock based said news article?


A google keyword search will help you find publicly traded companies that do what you're reading about, but remember that articles can be paid for and "emerging industries" can be pumped on no substance at all.

If you study past large sector moves, what happens when funds start buying, etc. you'll find these moves take months and sometimes years to play out so don't feel like you have to be first. If you're first, you're likely buying dilutive BS.
Posted by The Scofflaw
Metairie, LA
Member since Sep 2014
1940 posts
Posted on 12/5/23 at 1:52 pm to
By the time you read about a stock, it's already been discounted in price.

Stocks get shilled in media by institutions etc in order to generate exit liquidity. You really need to be ahead of the curve and have a niche if you want to pick stocks this way.

See an emerging technology taking place. Know which stocks stand to benefit. Buy leap options at least 12 months down the road expiry.
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