Learn to exploit news stories (or, How to make money from Fark)

[AvivaSimplex]

Readers of OOT, Fark, and other news sources will be familiar with the news that a new type of breast augmentation is being developed. This new technique involves removing a woman's own fat from other parts of her body, isolating the stem cells, and reinjecting them into her breasts. The company which does the cell sorting, and which has been mentioned in all the news stories, is Cytori Therapeutics (CYTX).

The story was first published in the popular press on Saturday, February 10th. Here's the 5 day chart for CTYX:
http://finance.yahoo.com/q/bc?s=CYTX&t=5d
As you can see, the stock gained steadily over the course of the first trading day. If you bought at the open and sold just before the close, you'd have made a 10% gain in one day.

Today the stock is down 4% at the moment. I expect it will fall a few more percent, then level out for an overall gain of 3-5% since the story came out.

It doesn't take any great skill to exploit this trend. All you have to do is find news stories that mention positive news for small companies, and are likely to be widely distributed where amateur investors will see them. This one fits the bill perfectly.

I missed out on this opportunity myself. I assumed that there would be a jump at the open, with no opportunity to get in near the starting price. It looks like this one took off around the time the East coast went on lunch break. I assume that's when thousands of people had time to surf the internet and put in some trades with their online brokers.