Bear Stearns stock today has traded between a high of $68.24 (before the Fed’s new facility was announced) and a low of $55.42. That’s an intraday move of $12.82 per share, or more than 23% of Bear’s value at its low point.
Does Punk Ziegel’s Richard Bove have that kind of influence? (He downgraded Bear Stearns today.) Somehow I doubt it. And in any case the stock, as I write, is actually trading more or less flat on the day. This is noise, pure and simple. And yet more proof that intraday stock moves – even really large ones – are often best ignored.
(HT: Jansen)