Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.
From hedge funds to individual investors, scores of market participants are turning to social media and market data to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.
Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.
While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis.
So, today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market...
- Nearest Resistance: $24
- Nearest Support: $23.72
- Catalyst: Acquisition
Leading off this afternoon's list of heavily traded stocks is mid-cap oncology drug developer Ariad Pharmaceuticals (ARIA) . Ariad has been a strong performer over the last year, but today's massive 73% pop in shares is a little different -- it's coming from acquisition news.
Ariad is rallying on the announcement that Takeda Pharmaceutical is buying the firm for $24 a share, a substantial premium to Friday's close. Ariad is seeing big volume today as shareholders cash in on the overnight price appreciation. At this point, shares of Ariad trade for a tiny discount to the deal price, implying a high probability that the buyout goes through as planned. Put simply, the money has already been made on the Ariad trade at this point.