Should I buy shares before a company releases a new product?
To state the obvious, a reason people buy a stock is the future potential returns from that stock from an increase in stock price or dividend payments. So one thing to ask is, if there is a piece of (potentially) good or bad news about the future of that company (say a new product release) then is that fact clear and understood by most people.
If it is, some of the potential impacts of that news may already be factored into the price of the share. My point is, it is worth thinking about the longer-term value/upside of a company when it comes to determining if it is likely to produce a price rise or increased profits.
As an example (not saying this is the case), if Apple has a huge opportunity to grow into new markets, that is a potential upside (not without risk) but it is not certain they will expand into those markets so it is perhaps less likely to be factored into the current price. This is of course just a personal opinion, you may consider doing your own deeper research.
A word on insider trading – which by the way is illegal. If you know some news or information about a company that would materially affect its value but this information is only known to company insiders, using this knowledge to profit from the subsequent price change of that stock is illegal – don’t do it!
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