[WalterBright]

I hear again the notion that investors are too stupid to know what is going on. The institutional investors, the ones who manage funds, are the ones that move markets, and they know damm well what is going on, and the shares get priced accordingly.

[mattzito]

So - I do advisory work sometimes for institutional investors. They ask me to consult on technology companies and talk about their market prospects and what X means in a company's earnings report. Those folks, while definitely savvier than the retail investor I described, are often so far off from the realities of the business we are discussing that it's shocking. There are exceptions of course, but by and large the market makers are equally victim to the representation of the company management

[WalterBright]

A CEO once told me how he (legally) manipulated the books to "get the numbers Wall Street was looking for". The stock tanked. Evidently he was only fooling himself.

A CEO might be able to hide poor results for a quarter or two, but the investors always catch on.