Ignore the Hype

The positive news story of an outperforming company generally results in poor performance after the story is released.

The average outperformance figure is 43% before the public release but only about 4% outperformance of its index after the release. Negative company coverage is followed by an outperformance of its index by 12%.

Three finance professors from the University of Richmond concluded that the article's contents are no longer news by the time the story is published.