Do Hedge Funds Buy Low Priced / Penny Stocks
Well, if your name is Carl Icahn you certainly do.
Shares of New York-based Voltari (VLTC) were up almost 10%, at $1.11, in late trading (after hours), on March 31 2015 after activist investor Carl Icahn disclosed this afternoon in a filing with the SEC that he had acquired a 4 million share stake at a price of $1.36.
While you and I had neither a way of knowing he was buying this recent position nor an opportunity to get HIS prices, we still could have profited from his moves. Spillover from this Billionaire’s investment caused a sudden spike,then a delayed,more robust rally on April 6, 2015 which made a lot of daytraders a lot of money.
One such professional daytrader did just that recently: he and his many daytrading followers in his daytrading/educational trading room-saw very active premarket and intra-day trading in this stock. And this was DAYS after the news was released. They focused in on specific trading metrics and bought the stock on rising momentum to profit as price appreciated nearly 68.44 % on the day!
Below is a chart of this action
So, as we can clearly see, Yes Hedge Funds buy low-priced stocks; and YES we can all profit from their moves even days after it is made public if we learn the fine art and skill of day trading!
Disclaimer- WARRIORTRADING neither endorses nor advocates buying and selling of low-priced/penny stocks.