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Old 05-04-2007, 09:02 AM
DcifrThs DcifrThs is offline
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Join Date: Aug 2003
Location: Spewin them chips
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Default Re: Could Someone Research This Angle

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i may be missing the forest for teh trees here but in what scenario would a small business stock not go up in the situation described by DS?? aka, a small company has a valueable idea that is huge to the company and it is either defending or prosecuting that idea in court. eventually the verdict comes out in favor of the small company... what would cause the price of that company's stock to drop as a direct result of the favorable ruling?? [img]/images/graemlins/confused.gif[/img]

Barron

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Unless the ruling is a suprise it should already be factored into the price. The same way with results of Clinical Trials. Phase III results on average result in a drop in share price.

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i thought about the clinical trials thing, however, i dont see how a ruling would be estimated like that. maybe i just haven't lived through or seen/heard of enough of them to get that sense.

Thanks,
Barron
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