The Mitt Romney Etch-a-Sketch gaffe will probably have legs well into the general campaign, but for now it’s amusing to note the effect it has had on the stock of Ohio Art, the company that makes the toy – (via the Atlantic)
There it is, quietly moving between $4.00 per share and $4.25 per share for the past two months and then bam! Romney adviser Eric Fehrnstrom makes the gaffe of the month: “I think you hit a reset button for the fall campaign. Everything changes. It’s almost like an Etch A Sketch. You can kind of shake it up and restart.”
In the 12 hours after that comment, Ohio Art’s price tripled to just above $12.00 a share. To give you an idea of how insane that is, consider that over the past three years, the stock has strictly traded in a band between $2.50 and $4.00 a share.
We can conservatively say that efficient markets have seen finer moments, yes?