Headline FeedsIf you want proof of how hypersensitive investors can be about takeover talk, take a look at what happened to online payment company Cybersource (Nasdaq: CYBS) last week. On Thursday, Business Week published a story about the company that quoted an unnamed source who said that it wouldn't be surprising if a company like Visa bought Cybersource.
This is obviously just speculation, but investors gobbled up the speculation and the stock climbed nearly 10 points to 43 at one point on Friday. Then, however, reality seemed to kick in and the stock did a dramatic about-face, falling rapidly and closing down 3-5/16 to 30.
The rise to 43 was obviously overdone and the ensuing sell off was probably overdone, as well. Regardless, this stock probably taught a lot of investors a valuable lesson on Friday. Sometimes chasing a rumor can really hurt.
