Ever wonder why shares of a stock sometimes jump when the company announces massive layoffs? Well, layoff announcements are usually accompanied by restructuring plans. If investors expect the changes to improve the company's performance, they may snap up shares, driving the price up. This was the case with sewing-machine maker Singer (OTC BB: SNGR.PK), which announced a few years ago that was laying off 28% of its workforce and that it would be closing some plants to integrate its production units with those of a recent acquisition. Shares shot up 17% that day.
News like this doesn't always pump up share prices, though. When Eastman Kodak
In more recent examples, Motorola