The Strategist

170% in two days. Planned or Improvised?

10/22/2015 - 14:48

Almost everyone wants to get rich quickly, especially if engaged in trade in the financial markets. One can spend years, not having caught the right trend, yet there are individuals lucky enough, who manage to get rich in a few days.

Andrea Booher
Andrea Booher
The examples are around us. Such an incident has occurred just this week. Stocks of a little-known company, which is also in a deep crisis, have suddenly shot up. The author of the surprise was a producer of dietary, Weight Watchers.

First, its shares have soared over 110% a day. It seemed that then lucky beggars should have certainly begin to take profits, but that was just the beginning.

On Tuesday, they raised another 31%, and the overall growth in the two trading sessions amounted to almost 180%.

Note that the growth has been quite good on volumes. Yesterday, for example, the trading volume was 36.8 million shares, which is 12 times higher than the average over the past 30 days.

What is the idea? Everything is very simple. The famous American TV presenter Oprah Winfrey has pushed the company, prudently having pre-bought 10% of its shares. During the first day of growth, Mrs. Winfrey earned about $ 50 million.

Here is what she wrote in her Twitter:

- I believe in the WeightWatchers program so much I decided to invest, join the Board, and partner in #wwfamily evolution

In addition, Winfrey has received an option to buy 5% stake in the company, and became a member of the board of directors and advisors. And the key point – she is going to publicly struggle with excess weight with the help of Weight Watchers products, and, of course, talk about her successes throughout the country.

The plan is a genius. Winfrey is not just a popular television presenter; she was recognized one of the most influential celebrities in America for six years (of course, largely thanks to her daily talk show, magazine, book club and production company Harpo. Incidentally, Forbes estimates her fortune of $ 3 billion).

And now let's imagine how many Americans watch talk shows and how many of them suffer from overweight? The question is rhetorical.