The Power to Move Markets — CBAK and Sagami

Lest anyone doubt the power of a newsletter tout to move the market, just take a look at the chart of CBAK today.  Remember, this  is a stock that we sleuthed out at the Gumshoe as a possible Tony Sagami pick after his planned visit to the company on his current Asian tour.

Some of you probably also saw the breathless emails from the Money and Markets folks, publishers of Sagami’s newsletter, about the conference call that you were invited to take part in.   Sagami was going to call after visiting the as-yet-unnamed battery maker, and share his opinions about management and about any progress they might be making on what he said was an important goal of getting a deal with a big automaker for hybrid lithium ion batteries.  Or something along those lines.

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Anyway … look at that chart.  Can you guess what time his “conference call” was?  That’s right, Noon EST.   And he  finally “outed” CBAK as the name of the battery company he was visiting (though Gumshoe readers have known the name since last week).  Immediate spikes in volume and price, most likely because Sagami said something about “looking into their eyes” or “feeling the vibes in the room” and getting an inside perspective on the likelihood that they’ll get this big auto contract.  Sorry, I don’t know what his exact words were, didn’t have the time to listen today, I just know for a fact that he shared the CBAK name with a few thousand listeners, at least, and they bid the heck out of the share price.

Will Sagami end up being right?  Did he really get “inside information” from the company through his “boots on the ground” visit?  Beats the heck out of me — I stand by my earlier assertion that I have no idea how to figure out which of the many, many battery companies will end up as winners in what is destined to almost always be a commodity business.

But clearly, if you keep an eye out for situations like this, where a newsletter tout promises to “reveal” his secrets at a particular time, then planning ahead and keeping up with your important Stock Gumshoe reading might occasionally bring you a nice trading opportunity …

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