RE: 6% rise!27 Jan 2021 15:15
Neil Wilson covered this in his daily Market trader update this morning from the Investors Chronicle. It's a weird fight between some investors against short sellers. Pumping up stocks to kill the shorters. Started in US but has now just moved to UK and Pearson has been heavily shorted :
"The problem it seems to me is that they are all working to artificially bid up the price of the security in question. This raises problems about potential securities fraud and specifically market manipulation. Bloomberg’s Matt Levine makes an excellent observation about the possibility of SEC action on this and whether or not the Redditors are carrying out what the regulator might see as an illegal short squeeze. In short, he thinks it could be seen as dodgy, or could be ignored. It’s up for debate still. But is it covert enough to be classed as market manipulation?"
I've got Pearson on watch following the Motley Fool recommendation of it as a strong long term buy but not bought any yet.
I think if you are a holder of Pearson and a believer of this story, then you need to think what to do if the stocks are being artificially inflated and not based on value growth ?