The Demise of RED5, page-9

"In financial economics, the efficient-market hypothesis (EMH) states that asset prices fully reflect all available information. A direct implication is that it is impossible to "beat the market" consistently on a risk-adjusted basis since markets prices should only react to news, and news by definition is random.
The EMH argues that stocks always trade at their fair value, making it impossible for investors to either purchase undervalued stocks or sell stocks for inflated prices. As such, it should be impossible to outperform the overall market through expert stock selection or market timing, and that the only way an investor can possibly obtain higher returns is by purchasing riskier investment."
While EMH is not a perfect representation of the market, it will punish bad news and reward good news. Up until now Red has had a succession of bad news stories.