successful trial results for world-first obesity d, page-26

mike west - thanks i agree market makes no sense "Market metabolism burns the fat off stocks, with much to exercise the imagination

December 15, 2004
BUY the rumour, sell the fact. Metabolic shares ran all the way to $2.20 a few days ago on fevered speculation that human trials of its fat-burning pill might be a success, and that we'd all look like Kylie Minogue.

Lo and behold, the company comes out and says, yep, phase II human obesity trials went well, the pill works. But what happens? The stock gets clobbered yesterday, down 48c to $1.56.

The message is that we are squarely in the midst of an irrationally exuberant market which reacts, not to events, but to expectations. If you're a punter, get out before the news. If you're a promoter, keep that news coming, no matter how silly it is. '