I’ve heard of market psychology but never really gave it any thought. That is until I watched this Ebola scare put $TKMR, $LAKE and $APT in the spotlight.
$LAKE has been trading between $5 to $7 for the past 52 weeks. Yesterday, it traded up to $10 a share. Because Ebola was still in the news today, this stock doubled to $20 per share on heavy volume. All of the Ebola plays were up yesterday and today.
It’s like everybody watches the news or finds it online then hones in on whatever stock they think is most related to the hype of the day. It doesn’t matter if its an earthquake, someone getting shot in Ferguson, Missouri or the Ebola outbreak. It’s all about finding those one or two companies that could benefit somehow from the media blitz.
Take $APT, they sell protective appeal such as lab coats, gowns, scrubs, hoods, face masks and other items that help keep aid workers safe as they deal with Ebola patients. Their stock typically trades around $1.00 per share. It closed the day around $5 per share and has been up to $6 per share in after hours trading.
The psychology of the market is determining how important a story will become, then finding the appropriate stock that could possibly benefit from the news. There is no way in hell that $APT is now worth 6x the amount of money. My guess is Alpine Pro Tech Ltd probably hasn’t sold any additional gear since this outbreak was reported.