Thursday, July 28, 2005
Didn't anyone notice PCTI?
If I had to single out one mistaken belief about the stock market that most traders share, it would be that the "market is always right". In fact, the market is almost always wrong. Case in point: PCTI. The company reported stellar earnings after the close, blowing away analyst estimates. You would have expected traders to immediately jump in with cries of "'Mon back", accentuated by sounds of a truck backing up. Nope. While the price did move somewhat higher in afterhours, the trading was very light. According to the NASDAQ website, only 4,300 shares traded hands. Fortunately, I was able to get my paws on 1,800 of those shares, buying 1,000 at $8.61 and another 800 at $8.71. On the whole it was a decent day for my portfolio, as it gained another $1,400.