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Yesterday, in efficient markets | FT Alphaville


You might have listened to that Slack — the in-do the job chat app that portends to enhance productiveness by harking back again to the times of MSN Messenger — shown on the New York Inventory Trade on Thursday. It did so with somewhat ironic ticker: “WORK”.

Much has been manufactured of the method. Like Spotify last yr, it chose the route of a immediate listing. This intended it was neither raising funds, nor ended up its shares underwritten by an investment decision bank. It just appeared: just one minute it wasn’t there, the subsequent it was. At the closing bell, its shares were being up 48.54 for each cent, to $38.62.

But that is not what caught our eye.

What did was the behaviour of an additional inventory: Workpoint Leisure, a $358m Thai media corporation outlined on the Bangkok Inventory Exchange, whose depositary receipts trade less than the ticker “WORK-R”.

In trading yesterday, 10.1m of its shares altered hands. The ordinary traded more than the past six months? Just 616,666, in accordance to Bloomberg details.

It can be not the initially scenario of traders seemingly mistaking one particular stock for a further. In April, CNBC documented shares of $5m Zoom Systems (ticker “ZOOM”) changed palms at 4 moments the common amount on the similar day of Zoom Movie Communication’s $360m IPO (ticker “ZM”).

Then there is certainly the Herzfield Caribbean Basin Fund, which trades below the ticker “CUBA”. In December 2014, it soared on news of Obama’s relaxing of diplomatic relations with the island. At the time, as professor Richard Thaler pointed out, the fund held no assets in Cuba, nor was it authorized for a US business to do company on the island.

In common, we are kind of believers in productive markets on Alphaville. But at times, even these investing with perfect information and facts get overexcited.

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Thaler, the CUBA fund and the effective marketplaces hypothesis (plus a round-up) – FT Alphaville