Newspaper "Tips"

[Pound foolish]

Last year, after the Mail on Sunday MIDAS tipped Albidon at 19p I watched it rise to 32p before lunch on Monday trading! A rise of 68% Anyone who got in on that would have done alright! (I bought at 19p on the down and they are now 1.75p!)

Last weekend MIDAS made a similar positive pitch for Petroceltic. The share stood at 4.08p at that time. I watched it go to 5.8p before lunch on Monday trading a rise of 48%
They share hit over 8p on Friday a 100% gain!
(I would have sold at 50% gain been happy and missed out on the rest though if I had had the time to do it)

See the story for yourself at:

Midas share tips: Petroceltic International and Cobham | This is Money

My question is:
When these sorts of stories come out is it worth getting in on some of the gain early on on the Monday or is this risky strategy. I think it only works with AIM listed companies that most people know nothing about.

 

[foredog]

The Aim companies will always open higher if the market maker has seen the story as he knows there will be buyers so why sell 'em cheap.

If you can buy them at the open when they've oly moved a little then you may make a profit but if they've already had a good run then don't bother becasue the minute the first sellers/profit takers appear they'll drop like a stone.

Also the Aim stocks are so illiquid you may be able to buy 10000 at the offer as the market maker has stock but when you come to sell them he may not wan them back and may bid you a few pence lower for the 10000.