Some interesting charts are attached which demonstrate how they have reacted
to news announcements. In each case the news was good and as you can see
each stock has proceeded to decline since the news announcement. The arrow
depicts the day the article was printed in the Financial Review. Usually the
stock makes the announcement the day before to the ASX, which can be viewed
on a live share price provider such as Bourse Data.
Details of the articles are as follows:-
Quiktrak
Financial Review, Thursday 15 June
Mentions that the company has benefited from the rollout of it's vehicle
tracking system in Chicago. Also speculation that it is to roll out it's
technology in Britain in July and an eye to expansion in Asia.
Global Business Solutions
Financial Review, Thursday 15 June
GBS announces a boost to e-business solutions contracts will boost revenues
to more than $4million in calendar 2000, exceeding prospectus forecasts of
$2.5million.
CSL
Financial Review, Friday 16 June
"CSL completes $890million deal to buy Swiss Red Cross blood plasma
business." Interestingly, the articles goes on to say, "Dealers said the
buying had been driven by unsatisfied demand from domestic fund managers who
found themselves underweight the stock". Always remember that the fund
managers will have to continue to buy a rising stock as it increases it's
weight in the indexes.
Be wary of news announcements and how the stock reacts. It is always better
to wait at least a few days to buy a stock after it has made a positive news
announcement.
Quiktrak Networks
Global Business Solutions
CSL Limited
