Wednesday, July 12, 2023

They had people puke at bars to call the product into question


Some of the plot lines in Billions are a little out there. 

But you'd be shocked at how close they are to the truth about…

What really moves stock prices in this tricky market. 

Let me give you an example.

In season two, a juice company had completed an IPO, and the main character (Axe) wanted to drive the stock price down to hurt his political rivals. Does he publish a hit piece on CNBC? Maybe corner the float on the stock to put it in the red?

Nope, not sinister enough.

They had a bunch of people puke at the juice bars to call the product into question.

That sounds like a stupid plotline.

But look at this mess of a weekly chart of Chipotle from 2015. 


Food safety warnings about an E.Coli outbreak in the stores triggered the selloff.

The stock got sliced in half.

You don't think it's possible to sabotage the food supply of a major chain to profit?

The Chipotle play was never proven, but this stuff happens all the time, and if you're on the inside, you can leverage institutional cash flow on either side of stories like this.

See our approach here.

To your trading success,

Steve Place

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