Application of the old adage: "buy the rumor sell the...

Application of the old adage: "buy the rumor sell the announcement".

As a result, speculative stocks are often sold off on (and just before) a relatively good but not spectacular announcement.

All the better if a trader knows when the announcement is coming even if not the content (but that sort of thing is not supposed to happen hey).

Then long suffering holders get disappointed and sell off, further impacting the price, so the traders buy back in a a lower price.

Then we all start speculating what the next announcement might be - rinse and repeat.