Why does a stock go up when there is an investigation?

Discussion in 'Trading' started by cashclay, May 11, 2021.

  1. cashclay

    cashclay

    SHAREHOLDER ALERT: WeissLaw LLP Reminds BFTL, OBLN, FI, and BMTC Shareholders About Its Ongoing Investigation.

    this is the alert or news that OBLN received and yet the stock went up almost 2 dollars. Isnt an investigation into a stock about its merger with another company bad news?
     
  2. Destrina or IamtheCasino must be buying lol....
     
    Nobert and smallfil like this.
  3. smallfil

    smallfil

    This is nothing but, a shakedown of these law firms. I was once, a plaintiff in one of the cases filed by this same law firm. The CEO settled and paid $10,000,000. I lost like $4,500 due to the fraudulent financial statements of said company. Lawyers kept most of the $10,000,000 in settlement monies. I was to receive the grand sum of $150 but, I had to fork over detail financial information which probably, will put me at risk of identity theft. Told them to stuff it. These lawsuits are a joke with the victims of wrong doing getting little to nothing at all. Now, these lawyers, they clean up. That is why they keep filing these lawsuits.
     
    guru and Vtechno like this.
  4. guru

    guru

    smallfil likes this.
  5. maxinger

    maxinger

    nice gentle declining channel.

    must be a badly managed company.
    peak price was around 160.
    now it is around 3.

    will it be zero?
     
    Last edited: May 12, 2021
  6. cashclay

    cashclay

    But why does the stock go up ? Because it an investigation into the merger they are having.
     
    Nobert likes this.
  7. guru

    guru


    Because investors aren’t stupid :)
    Such “investigations” happen every minute on various companies and mean nothing. I or you can also announce that we are investigating something and that we hired an attorney.

    https://www.google.com/search?q=walmart+number+of+lawsuits
    Walmart gets sued nearly 20 times a day, or 5,000 lawsuits each year”
    And their stock goes up.

    Stocks go up when people buy them, and may go up even higher when non-stupid people buy them, knowing that “investigations” are bs.
     
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  8. smallfil

    smallfil

    Don't you think if the lawsuits have any merit, the SEC, FBI and DOJ would be involved and people will get arrested? No need for these lawyers to get involved. Lawyers figured out they can just shake down companies and get rich by filing frivolous lawsuits. Fraud does happen but, these lawyers are even worst than the perpetrators. They exploit the victims and use them as pawns to get a huge settlement.
     
  9. newwurldmn

    newwurldmn

    these are ambulance chaser lawyers. It’s a scam.