I've started buying stock after every breach announcement (seriously).
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Replying to @taviso @jeremiahg
Would be amazing if you shared the performance of the "Ormandy Index Fund of recently breached companies" on a semi-regular basis. It's a fun investment strategy - yet I will be surprised if it beats S&P.
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Replying to @Lee_Holmes @jeremiahg
I dunno, I think it might outperform. The hard part is calling the bottom and the size of the position, I just buy near the market close on the day of the announcement and proportional to the size of the reaction.
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Replying to @taviso @jeremiahg
And the exit. If it's too long, then you're basically investing in an arbitrary smattering of companies waiting for them to recover. If it's too short, you might miss the full opportunity of the swing.
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Replying to @Lee_Holmes @jeremiahg
Yep, I'm only interested in holding until reversion to it's pre-announcement price (or close to it, if the broader market is down). I just don't believe data breaches affect company stock performance (which is unfortunate, cause they might be motivated to prevent them
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Replying to @taviso @jeremiahg
Things aren't looking good for
$OIF!pic.twitter.com/NwMMccn1SM
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Replying to @Lee_Holmes @jeremiahg
I don't follow, that seems really good?
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To make sure we're on the same page, my theory is you buy following an announcement proportional to the size of the reaction, then sell at the pre-announce price (or where it would be if it followed the broader market). Based on those notes, it seems like it beat the market?
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e.g. let's say you invest $1 per basis point loss after a breach announcement, just to keep math simple. Multiply by the size of the reaction, so a 5% dip means you invest $500, then sell when the stock recovers to the price it would be if it had followed the sector.
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Curious... did you buy SuperMicro’s stocks back in October. According to Bloomberg/Businessweek they facilitated a bunch of data breaches.
pic.twitter.com/5JRQdVbUc1
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Tavis Ormandy Retweeted Tavis Ormandy
Yep, sure did
https://twitter.com/taviso/status/1048637201355960321 …
Tavis Ormandy added,
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Ahaha. Fair enough... Sadly FUD seems to affect stock market more than real breach (at least according to the graph I posted previously)
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