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 place to begin 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.
Fortress Investment Group
- Nearest Resistance: $8.08
- Nearest Support: $7.95
- Catalyst: Acquisition
First on our list of the market's most active trades today is private equity firm Fortress Investment Group (FIG) . Fortress is up more than 28% this afternoon, rallying on news that it's being acquired by Softbank Group in a $3.1 billion deal that will pay Fortress shareholders $8.08 in cash. That big up-move puts Fortress within about 1% of its purchase price, implying that Wall Street is pricing in a 96% likelihood that the deal gets done. That means, at this point, the money has already been made on the Fortress trade. Investors should look elsewhere for upside opportunities.