WorldCom Incorporated has captured the imagination of investors looking to make a quick profit in recent days.
Last week, for example, day trader Rongdong Lu bought 5,000 shares of the telecommunications company at a mere 6.9 cents apiece. He sold his shares two days later at 24 cents, for a net profit of $750, or more than 200 percent after commissions.
Lu, a student at the University of Alaska in Fairbanks, says he guessed there would be a rebound but was also prepared to lose his investment. Remarkably, he's had plenty of company and NOT just among his day-trading brethren.
Trading in WorldCom's stock has soared on the Nasdaq Stock Market since the telecommunications company disclosed improper accounting of $3.8 billion on June 25th.
From the beginning of the year till that date, average trading volume was 105.7 million shares daily. In the seven trading days since then, average volume has been a huge 639.5 million. That includes a record-breaking 1.51 billion shares on July 1st, the first day of trading following a three-day halt.