TV commercials prelude stock runups

O

optionsplayer

Has anyone noticed over the years a link between huge individual company stock runups and national advertisement campaigns on tv?

Case & point: the latest illustration of this is ebay. About a couple of months ago, eBay launched their huge "Do it eBay" campaign which is kind of humorous. The stock has been making solid gains out of the low $70's base since this started. Presently in mid $80ish range.

Remember back in the day, the commercial for Peoplesoft where the guy brushes his teeth right at the computer to finish a job. That stock was in the low teens when they started coming out at $12ish and ran all the way to $40 something at the peak of those commercials, which ran for months during this run up.

How about the infamous or famous EXPE, depending how you played it. Here was a stock sitting in the $20ish range last year. EXPE launched a bunch of funky colorful tv ads "Expediaaaaa....ccccooooommmm" and when all was said and done inside of 4 months just when the commercials started, EXPE was sitting pretty at $80.
 
I remember a strange situation 3 years ago, when I was a junior derivative trader in Frankfurt, Germany. To that time there were advertising banners of Nortel almost everywhere- train station, bus stop, airport- and I was just wondering why they did that much advertising in Germany, because ordinary human beings never buy a product of nortel networks!!

Now I know: It was to blend all those clever investment bankers walking around there.
 
Quote from optionsplayer:

Has anyone noticed over the years a link between huge individual company stock runups and national advertisement campaigns on tv?

Case & point: the latest illustration of this is ebay. About a couple of months ago, eBay launched their huge "Do it eBay" campaign which is kind of humorous. The stock has been making solid gains out of the low $70's base since this started. Presently in mid $80ish range.

Remember back in the day, the commercial for Peoplesoft where the guy brushes his teeth right at the computer to finish a job. That stock was in the low teens when they started coming out at $12ish and ran all the way to $40 something at the peak of those commercials, which ran for months during this run up.

How about the infamous or famous EXPE, depending how you played it. Here was a stock sitting in the $20ish range last year. EXPE launched a bunch of funky colorful tv ads "Expediaaaaa....ccccooooommmm" and when all was said and done inside of 4 months just when the commercials started, EXPE was sitting pretty at $80.
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Wow Dude, with such a keen analytical approach, I can't imagine why you ain't rich!

BTW - didn't ENRON advertise until the bitter end?
 
Anyone remember those heavy advertising campaigns in Barrons of Knight Trimark about 3-4 years ago?

I'll never forget.

Something like" ... We are Knight.... we make your trades..."
During this time top management unloaded their last inventory of stocks, respect guys. This is how the crowd gets hammered!
 
Quote from tampa:



Wow Dude, with such a keen analytical approach, I can't imagine why you ain't rich!

BTW - didn't ENRON advertise until the bitter end?
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Hi Tampa,

there is something wrong with your homepage! Would be interested in the stuff u provide there. :cool:
 
He might be on to something. I've read that stocks associated with book publications ( ie a Jack Walsh book), usually do well around time of publication. Could be similar factors at work here.
 
thanks for posting concerning tv commercials. very interesting. if you noticed all the crazy online broker ads--like ameritrade and e*trade ran heavily right at the top of the tech bubble. this was very fortelling of the "blow off" top to come.

best,

surfer:)
 
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