Market Overview

Benzinga Pro How-To: Profiting On Press Releases


What won’t companies do for the blockchain boost?

Long Blockchain Corp (NASDAQ: LBCC) announced Jan. 16 it had entered into a letter of intent with Stater Blockchain Limited, and the immediate, 25-percent pop in share value was seemingly satisfying enough to warrant republishing of the release for repeated results.

But like a recycled joke, the tactic wasn’t nearly as effective the second time around, worthy of a mere 5.8-percent hike.

A Curious Occurrence

Long Blockchain confirmed that the announcements, released at 8:48 a.m. and 10:53 a.m., were identical but justified the later duplicate by its distinct origin.

“Long Blockchain issued premarket today and it looks like Stater’s PR firm issued the same announcement later in the morning,” spokesperson Devin Sullivan told Benzinga. “The only difference is the timing, but the announcements’ content is the same.”

It's the same — right down to the primary subject. Despite being released by separate entities, both copies lead with "Long Blockchain Corp. (NasdaqCM: LBCC) (the “Company”) today announced…," which is unusual phrasing for Stater, who paid for its separate report.

Generally, collaborators issue releases near simultaneously, and each party attributes their respective announcements to themselves.

Alas, What Can You Do?

Regardless of the strategy behind or reason for the double release, traders who missed the first report and instead acted on the second could’ve been wiser.

Benzinga Pro’s press release feed quickly alerted investors to the duplicated catalyst, while the BZ Wire confirmed the information was already out.

Those referencing Benzinga’s platform easily saw the market had already responded fully to the “news” and accordingly resisted buying.

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Posted-In: BZ pro how toEducation Trading Ideas General


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