Western Railroad Discussion > KCS Acqusition - Another Case of Fake News?

I just saw this posted on Yahoo Finance. It appears the acquisition of KCS by Blackstone may have been a case of Fake News. Time will tell, I suppose.

After a Curious Stock Surge, the News Report Behind It Vanishes

https://finance.yahoo.com/news/curious-stock-surge-news-report-151630928.html

Posted from Android

You don't think someone would start a rumor to manipulate a stock price now would you?

If you want to participate you can buy either way, one way if you think it is true and the other way if you think it is false.

fbe Wrote:
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> You don't think someone would start a rumor to
> manipulate a stock price now would you?

Of course. However, I wouldn't want to be the one responsible for the manipulation.

> If you want to participate you can buy either way,
> one way if you think it is true and the other way
> if you think it is false.

Yep. The best move is just to sit this one out. The offer seemed excessive from the start.

Posted from Android

Why would you think it was excessive? $21M for a property with a real value of $7M sounds like a heck of a deal,
'for somebody.

Out 



Edited 1 time(s). Last edit at 08/12/20 14:49 by callum_out.

KCS stock (KSU) has not changed much.  It is still over $180.

My college Finance professor told us if you read the news in the paper it was too late to do any good for your portfolio.

And he was right. Wise man also said that if you're going to dabble in the stock market
do it in an area that you know. 

Out 



Edited 1 time(s). Last edit at 08/12/20 14:50 by callum_out.

Vicksburg_Route Wrote:
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> I just saw this posted on Yahoo Finance. It
> appears the acquisition of KCS by Blackstone may
> have been a case of Fake News. Time will tell, I
> suppose.

FYI, you posted a great analysis of KCS in this thread:

https://www.trainorders.com/discussion/read.php?1,5052180,page=2

It would have been "free info" for the Wall St. manipulators, but they would have had to become TO members to read it, since it's in the 2nd page of the thread.

Good way to kill a rumor after pump and dump is to discredit the rumor, which is what might have happened here - whoa, the "source" vanished! Whole thing smells fishy. Don't forget how the above thread got started, a possible Blue Horseshoe moment (reference to the movie "Wall Street"). Financial media has been doing this for decades, and I don't remember this being called Fake News back then!

We've had good discussions on "employee ownership" of a company, but here's an example where that could have led to a huge distraction.

Anyone watch Kodak stock a few weeks ago?  In four days a ton of money was made,  and then......

SEC might hit someone on that rumor.

tomstp Wrote:
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> SEC might hit someone on that rumor.

Got justice? (like "Got Milk?") :-)

Interesting things happened during the Dot Com hype couple of decades ago, off topic, of course. In a nutshell, don't count on the SEC.

cchan006 Wrote:
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> tomstp Wrote:
> --------------------------------------------------
> -----
> > SEC might hit someone on that rumor.
>
> Got justice? (like "Got Milk?") :-)
>
> Interesting things happened during the Dot Com
> hype couple of decades ago, off topic, of course.
> In a nutshell, don't count on the SEC.

Years ago, the Securities & Exchange Commission actually looked into stuff like this.  That was before politicians of both parties appointed the wolves to oversee the hen house.

Sort of like having a skilled union de-certifier as secretary of labor, and management lawyers as the majority on the National Labor Relations Board.  Or industry lobbyists running the EPA, Consumer Financial Bureau, etc. What could go wrong with that?