Colt - 2005 New Year, New Highs.............

Rob - interesting article.
Couple of observations re Colt
1) Continually notice very small trades first thing in the morning -effect is to trigger an opening price which is up to 4% lower than closing price from previous day. I wonder whether this is something that has become particularly prevalent since the advent of margin trading. Convinced some people in the market place have access to information on all derivative contracts in play.
2) Suspect that over the last few weeks margin trading has been insignificant - borne out by the fact that Colt has traded in a very tight range. However, in the run up to next set of results, expect to see margin traders move in to take advantage of potentially high beta. If results are good could see a substantial overshoot on account of margin trading.

Heard it said that only 2 out of 10 margin traders(retail) make profits.