“Not really. What do you mean, curve?”
“You ride it. That’s how it feels.” Colin made a swooping gesture with his hands. “My analysis shows there are almost always two rises and falls before the news becomes official. Sometimes three.”
“So the newspapers and journals …”
“They show trends. Patterns in each of the industry sectors. They form the foundation.”
“And the event?”
“That comes mostly from specialist chat rooms. Sometimes the online industry sources. Not often.”
“These chat rooms …”
“They are specific to the job. Professionals talking to professionals.”
Lucas asked, “Aren’t they like, super protected?”
“Most use the same firewall system.” He was about to reveal how he had created a fake persona, then decided it could wait.
Roland asked, “You’ve found rumors about a what, a merger?”
“Acquisition,” Colin said. “Yes. And no.”
“Explain that.”
“Entertainment stocks follow a set pattern. When the rumors grow to a certain point, the market buys in.”
“And you predict this point with your …”
“Algorithms. Right. Then the rumors fade, something else captures attention, or a trend suggests the initial rumors weren’t so great after all. The stock dips. Then the rumors start up again, this or next time including the real news sources. And the market rises a second time.”
“So you’re trying to get out in front of a new …”
“Product. It might lead to an acquisition. Whether or not that happens doesn’t matter in this first rise.”
“How many rumors, how many sources …”
“I only input the data once I’ve found the news in six different sites. At least a couple of these have to claim it came from different sources.”
Roland made a process of realigning his cup and saucer and dessert plate. He folded his napkin, pressed it flat, set his fork on top. Pressed again. “You said two factors.”
“There’s a growing merger wave in the media sector. It’s driven by deregulation and technological development. The E&M industry—”
Alexi asked, “E&M?”
“Entertainment and media,” Roland said, almost impatient. “What this young man is saying jibes with information we’re receiving through my firm’s clients.” To Colin, “You do know Wilmington has become one of the fastest growing offshoots of the LA entertainment groups.”
“Yes.”
He nodded. “Please proceed.”
“All the industry sectors are transitioning to mobileaccess. New content offerings are being designed for the new environment. The industry is changing in the biggest ways since sound was introduced. There’s a strategic shift to digital. Plus the big companies have strong cash reserves. And there’s a growing number of private equity firms looking to invest.”
Roland was nodding softly in time to Colin’s words. “Which means any new potential acquisition …”
“It’s not an acquisition,” Colin said. His heart was racing now. Almost like Roland’s quiet words were adding fuel to his own excitement. “Not yet.”
“It’s the rumors.”
