Thursday, June 23, 2005
Not so hidden gems
A friend of mine was kind enough to forward to me the latest issue of Motley Fool's Hidden Gems. This month's pick, which was released at exactly noon, was COLM. By about 12:05, the stock had jumped by a dollar. I went back and looked at prior recommendations. This happens on a regular basis. As soon as the pick is released, the stock price typically moves between 5 and 10 percent. Today's move was a bit more restrained because COLM has a market cap of nearly $2 billion, which is bigger than the market cap of the typical pick in Hidden Gems (how hidden is a stock when 21 anaylsts follow it???). Needless to say, the noon price (and not the day's closing price or the following day's opening price) is the one that is used in the advertising showing how the Hidden Gem newsletter performs relative to the market. Naughty, naughty in my opinion.