If you read it on the internet, it must be true. Or so some would like you to believe. This seems to be especially true in the finance world of blogging and I am surprised it is so rampant. Actually, nothing surprises me anymore – I guess a better word is irritated. One would think that the SEC would have some influence on this media outlet, at least at the website domain level. I can understand it would be difficult, if not impossible, to regulate a blogger, but the site itself should be held accountable for misinformation being presented as actual news.
Here is a perfect example. Here is a recent article (I use the term loosely) on a site that poses as a credible source of financial news. This particular article states that a company (OCZ) has been acquired by another company (Seagate).
If you actually look into the source, you will see that it also is from another site, Bright Side of News, that poses as a credible source of financial news. In the article though, it is stated that an acquisition is speculated, not that it has happened (see the question mark in the headline).
Regardless of whether or not the speculation ends up being fact or not, this is all still very piss poor “reporting”. What further baffles me about this whole thing is the fact that these articles get posted under Yahoo Finance “Headlines” as though they are a credible source of information.
Buyer beware – if you are only getting your info from Cheat, Alpha, or even Motley….you may be a fool. To test my hypotheses, I actually posted an article a few weeks back on Seeking Alpha that was more joke than fact. All I did was repost my 2nd Half Stock Pick post from my own blog here and, voila, I was a financial expert on Seeking Alpha. I even got a respectable 9 shares on linkedin. I love social networking.
Ironically, if someone took my article as reliable info and made a purchase of stock based on that, they would be up about 8%. That is a pretty solid return for just 30 days. I will consider this as proof that monkeys can both pick stocks and write blogs, simultaneously.
In all seriousness though, check out the volume at the time of this screenshot – nearly 6 times the average daily. So someone is making (mis)informed decisions based on this speculation turned into news. Personally, I am crossing my fingers that the speculation holds water as I am jumping on the bandwagon. Between the fed, corrupt insiders, and “journalism” like this – it isn’t investing anymore, it is gambling. Come on baby – no whammy, no whammy, no whammy!!!