Saturday, May 28, 2011

More Insider Trading Uncovered in Silicon Valley

We don't think the world is unenlightened enough to believe the following:

...that some junior cubical worker (e.g. finance dept.) at a pretty large tech. company is capable of having free access, easy access, and comprehensive access to inside financial information and more, and having an excellent organized chain of conspiracy heading straight to Wall Street that has caused massive trading volume irregularities, huge and frequent vacillations in stock price, too many law suits to count, timing irregularities with trading windows and insider activity including stock hype, obvious irregularities in options volumes near expiration dates, and an especially obvious price movement before and after an earnings report... we call it weird statistics...

- and all this when lots of companies have a special officer/VP/exec staff member who does nothing except manage relations with Wall Street? -

... to believe that the cubical worker acted alone and was able to secure all the illegally disseminated information in one of the following ways: 1) without any help from anyone more senior in the company, or 2) by simply taking advantage for many years of a free-for-all unregulated financial environment established at the company?

We think another guess is in order, especially important if an investor wants to win instead of lose. Be careful who helps you in Silicon Valley.