Ann: Appendix 4C - quarterly, page-327

"Another possible explanation for a sell-off following good news is related to noise traders. The term noise trader is generally used to describe non-professional investors, but it may also include technical analysts. Noise traders do not analyze the fundamentals of a prospective investment, but instead make trades based on news, technical analysis indicators or trends. They are often thought of as impulsive and may overreact to good or bad news. So, if XYZ Corp. begins to sell off after a positive earnings report, as described above, noise traders may jump aboard, exacerbating the down move.

While there are many possible explanations for a stock's value declining despite good news being released, the most important thing for an investor to do is remain calm and consider both the time frame for your investment and the reason you bought the stock in the first place. If you have a longer-term time horizon and the news does not go against, or perhaps even supports, your investment thesis, the sell-off may represent an opportunity to add to your long position at a lower price rather than a reason to sell. "