Activist Investors Attempting to Undermine Ruger and S&W

Get woke, go broke is real.

What actually constitutes an "activist" investor? I'm under the impression that when companies go public and get investors involved, they will inevitably lose some power and be asked to do things that they would not normally. So where do we draw the line? It seems like making decisions that can be directly adverse to company health would qualify, but that happens all the time without it being obvious at the forefront of the decision.

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Originally Posted by Justin

So you're thinking that the very fact that these guys did an interview was enough to move the stock price up?

It blows my mind that articles in the press can actually move markets.

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I am willing to concede it might be coincidence, but it sure looks consistent. Press Articles certainly influence stock prices. I have seen it happen repeatedly for years. I have stocks that does great with a D in office and others that do great with an R in office...with no connection to real world company performance. I bought several stocks before and after Trumps elections purely based on what I felt the press and market watchers in the press "felt" it would mean. It is a fickle market that has become more fickle in the last 10 years.

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Originally Posted by Irving

What actually constitutes an "activist" investor? I'm under the impression that when companies go public and get investors involved, they will inevitably lose some power and be asked to do things that they would not normally. So where do we draw the line? It seems like making decisions that can be directly adverse to company health would qualify, but that happens all the time without it being obvious at the forefront of the decision.

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There have been cases, involving investors with enough money, buying stocks in a company whose "world view" they support in order to prop them up, and others where enough is bought, some profits taken to absorb future loses, and then dumping it in order to drive the price down. Those men and women whose wealth is almost astronomical along with fund managers who wield the power through their clients wealth can, and do use these tactics at times.