The question was whether that announcement merited a 70 percent...

The question was whether that announcement merited a 70 percent rise in the sp?
The market consists of ST and LT traders/investors. These investors and traders consist of retailers (minor) and instos/wealthy individuals (major). The major sector is the funds that move the market and hence can manipulate a stock to suit their outcomes - illegal but unfortunately it happens. Then there is the psychology associated with investing. When we combine the major funds with ST and psychology, in this case positive, a SP can run higher on expectation with the aim of the major money to exit in the ST to make a profit. This is fed into the market to create a hype at different intervals with an anticipated stimulus pending (announcement) to force the SP up. This big money then sells into it. This is more frequent in stocks which have immense potential but are still speculative in nature as at this moment 88e is difficult to value. It creates the basic dynamic to what us TAers call a Pump and Dump. However it doesn't mean that the stock will retrace back to it's original price. it can settle higher especially if the FA follows through causing a re-rate. On the way down we will see minor versions of P& D until the major money has had their profits. Then it will settle until the next news event. If the FA keeps delivering, we should see the SP settle at higher levels each time and conform to what us TAers call a Uptrend.