| |
You have to look at the fine print in any news story you read regardless of the stock you want to invest in. Sometimes a news story will say that the stock tips are from a person who was paid to disseminate this information. A case where someone is given compensation for offering tips must be disclosed in a report. This is often a sign of concern as the news report might just be an advertisement to promote a stock.
In addition, there are times when a person who writes a story says that he or she has some position with the stock being discussed. A story about Boeing stock might be written by a person who holds that stock. That writer has to state at the bottom of the story that he or she holds some stock in Boeing. This suggests that the writer might be biased and could be trying to hide information that could hurt the value of the stock. Stories like this need to be taken with a grain of salt. After all, the writer might just by writing a positive-sounding story because that person wants to push the stock into a more favorable position for him.
