My favorite quote from any of the current spate of articles talking up the idea of a Microsoft purchase of Blackberry-maker Research in Motion:
The Waterloo, Ontario-based company’s shares regularly move as much as 5 percent in a single session, even in the absence of news. [Emphasis added]
The above sentence works best if you read the emphasized words with an incredulous tone to your voice: even in the absence of news.
Quiz question: How many companies with $50-billion market capitalizations (or larger) swing as much on a daily on a basis as RIMM? I can’t think of many.
Answer: RIMM has the highest beta of any Nasdaq-100 stock with a market cap over $20-billion.