Nokia had already gone too far too fast with a 50% gain in only couple of weeks. The run-up went parabolic yesterday and early today based on a rumour that Lenovo (SEHK: 0992) might be interested to acquire the Finnish mobile phone maker. There is also a lot of speculation about Nokia World releases and insider buys last week have also carried Nokia.
Despite of these things explaining part of the upturn, it looks like market effectiveness might be compromised by the days we live in: blogs and news outlets ready to pick up fantastical stories found in any given social platform. These are certainly used by pros. Lenovo today denied the rumour. Some investors were able to figure out by themselves, that it would be a very hard move for Lenovo to make, but many were caught by surprise too and the stock quickly 15% downswing for the day.
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