Posted on 03/29/2007 1:48:12 PM PDT by farlander
The company said after U.S. markets closed that an audit panel had found accounting errors and evidence of misconduct.
Dell also said it will delay filing its Form 10-K until it has completed an internal investigation.
(Excerpt) Read more at cnbc.com ...
http://www.thestreet.com/_yahoo/newsanalysis/techhardware/10347570.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
Furthermore, sizeable buying of Apr 27.5 Puts was detected yesterday on our systems, with additional 20k contracts bought today, of which a 4k block traded right before the close.
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Uh,oh...this could get ugly...
Another reason to by a Mac.
If an insider buys a lot of puts because they know something bad is about to happen, and I happen to notice that a lot of puts are being bought and figure out that someone must have inside information, so I buy the same puts,
am I considered to have acted with inside information, since my proximate cause of my purchase was people using inside information? Or do I get off because I didn't have any real knowledge?
Didn't they also announce Linux?
You are scott free. If you trade off price/volume information from the markets, you trade off of publicly known information.
Hence the practice is EXTREMELY profitable (hehehe), but that's why SEC comes down HARD on the offenders.
Support at 21.80, next one at 20.50, and final at 19. It's only a question which one will it be tommorow.
I wouldn't go that far. Macs are generally far overpriced, and in all the years I've bought Dell commercial and home office equipment I've *never* had it go bad.
But... but... Sarbanes-Oxley was supposed to prevent this sort of thing... Right???
[/sarc]
They should be forced to only use lawyers from Pakistan.
Riiiight. /sarc
Yep, pretty much all SarbOx did is tack on millions in lawyer expenditures for public firms, and shift IPO business to London. It's not like we didn't have *plenty* of existing laws to prosecute the Enron/Worldcom dirtbags.
Insider trading is defined as profiting from material that is material and non-public. In your example I think there's no problem.
We all know how the rest of the song goes: downgrade by a big Wall Street firm, discovery that the puts were bought by same firm, and statement from the firm that the puts were bought "through us, by a client who did not wish to be disclosed".
Your observation is not inside info.
Welllll... if an SEC subpoenas them, "the client" won't have much choice on the whole disclosure issue. Happens all the time. That's how they busted that last insider trading ring - investigation started Oct 2005, when someone bought 200k worth of Reebok calls right before the Adidas takeover was announced, and, they made 2.1M in about 2 days period. Let's just say authorities didn't let that one go, nor do they let the really egregious stuff slip through. Like recent takeover of TXU - they're still investigating the options activity of that Fri. They were buying calls that Fri like they were going to run out. That was 'only' a 200% gain. Not really worth spending time in fed custody.
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