When any stock makes a large move on any news development, it's generally an indication that something big has happened and investors are about to change their perception about a stock.
In simple words: the stock has done something like this:
Case Study: Symantec
This is what happened with Symantec in June 2016: "Symantec to Acquire Blue Coat and Define the Future of Cybersecurity" and see how Symantec stock reacted to the news flow:
A big move is not an opportunity to SELL but BUY. The Problem: People look at analyst reports and become Value Investor 🙂 Better not to listen
The company continued with acquisitions and its journey to become a leader:
Symantec major major turning point in 2016....smart acquisitions. The recent one Lifelock pic.twitter.com/ZmCQyCnE6r
— Deepak Singh (@smarket) November 27, 2016
Now, more than 15 months later: this is how Symantec stock looks like:
Yes the stock was buy even after a big move early this year at $24
Symantec is now the leader when it comes to cybersecurity stocks...very bullish positioning pic.twitter.com/I1xjl7ULxk
— Deepak Singh (@smarket) January 4, 2017
There is another Firewall player now perfectly positioned to make a move: Fortinet
I hope the case study helps you understand how a major trend initiates and becomes big in few months time.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers