Yes that's a good point. I should rephrase my point to say stock price follows institutional opinion about a stock, because they tend to act as a group. And analyst calls publicize the institutional opinion, to draw in public enactment of it, adding to the pressure. Whether that results in profit or loss to the institution is a different matter. But I think they are able to drive a stock price against fundamentals, and maintain that unnatural price for a while by making public statements, and running automated trading programs whose only purpose is to drive stock price in a direction.
Otherwise how to explain the avg 400m shares of trading volume in intel every week ? By the end of a quarter of this, after billions of shares change hands, there is hardly any change in the institutional holdings. |
