They do it again, they being the media.From the...

They do it again, they being the media.

From the Age....

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"But, as recent research from the University of Western Australia shows, a dose of newspaper coverage is a godsend. The research detected a direct correlation between investor interest in a company and the number of times it is mentioned in the newspaper.

The research was designed to test the theory of Nobel laureate Robert Merton — that investors choose stocks that get the most publicity, even if the "news" contains no new information.

A review of the methods used in a BRW stock tipping competition showed that the participants, mainly university economics students who might have been expected to use valuation techniques and investment theory, based their decisions largely on the number of stories in the national press in the previous month.

Associate professor Raymond da Silva Rosa, from the University of Western Australia's Centre for Capital Markets Research, said there was also a bandwagon effect — that "the perceived level of risk was less" — as more investors poured into the stock of the moment.

"The number of stories in the national press in the month preceding the selection contributed over 50 per cent to the decision to pick a particular company," Professor da Silva Rosa told an investment conference this month."

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I wonder how many more times CDU will appear in the media.......lol