Earn More About Stocks Trading

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 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.

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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.

Today, we’ll leverage the power of the crowd to take a look at some of the most active stocks on the market.

Shares of small-cap biopharmaceutical stock Raptor Pharmaceutical (RPTP)  are up 20% this afternoon, boosted by news that the firm is being bought by Horizon Pharma  (HZNP)  in an $800 million deal that pays shareholders $9 per share in cash. The deal adds Raptor’s rare disease treatments to Horizon’s portfolio of drugs, and Horizon plans on financing the deal through a combination of debt and cash on hand.

From a technical standpoint, the money’s already been made on the Raptor trade. Shares popped to within a few cents of their acquisition price almost immediately this morning, indicating that shareholders see a very high probability of the transaction being completed. Investors should look elsewhere for upside opportunities this week.

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