8x8 EGHT & insider trading

Discussion in 'Stocks' started by keyser1, Dec 10, 2005.

  1. keyser1


    The entire week 8x8 trends sideways. Then all of a sudden in the late afternoon it jumps from ~1.45 to 1.8 on huge volume and no news (volume for day was about 12x avg volume). Ends up 42% for the day. Afterhours, big new contract announced, and ends after hours up 73%, for a total change of 147% from previous day's close.

    2 things --

    1. Feel free to discuss anything 8x8 related, or VoIP related. Any good VoIP plays that are bounced to go crazy in the coming year?

    2. Martha Stewart went to jail for insider trading, and to set an example to the rest of the insider traders. I personally don't think she should've gone to jail, but rather a huge monetary penalty (like giving up all stock sale proceeds from that trade) would've sufficed. But anyways, I find it hard to believe that in this case, the trading on 8x8 was just coincidence. Stocks don't go up 42% based on non released news unless someone knows about it and is buying cause of it.
    Will the SEC investigate this? Will someone be going to jail? . This is actually why I was against MS going to jail, because it happenned every day before her incident, and continues to happen every day since, she was just the one unlucky person to get singled out. So why doesn't the SEC investigate these kind of anomolies? Find out who did the trades? And why they decided to buy a boat load just before a huge announcement?
  2. I personally dont know, but i remember a few days ago RMBS had that huge intraday drop that was supposedly caused by a rumour in chat room. It was later proved wrong and the stock retraced almost fully. So i dont really know what happens in a case like RMBS or EHGT.

    In slightly related news i found it comical that Briefing had a line that a director sold 50k of his SPEX shares in the 4-4.50 range. Theres an extra 150k I bet he wasnt expecting.
  3. I posted on 8x8 about 1 year (?) ago re: one of their SEC filings. Seems the BOD had given the CEO carte blanche to trade the firm's cash, which itself makes up the bulk of firm assets. As such, EGHT owners are essentially funding a trader.

    Run a search here under EGHT and look back over the old posts.
  4. It is always a good idea to have a hot list of stocks that are going to break out upwards.

    I don't do stuff under 10 bucks and I limit ownership to a total of 100K shares.

    On any day of an impending price breakout you will see volume rising so fast that it will exceed the prior day (DU level) very soon after open.

    If you want to watch closely, you can see the % of DU rising significantly right from the open.

    If the prorata volume is running 3 times the DU, you can count on a brice breakout just after the volume reaches the DU level in the early am.

    The SEC, for a while did not understand this stuff. they do now and will not cite you for trading this way.

    For a period, they had the notion that when a person trading over ten accounts (I was always cited when I traded more than 10 accounts so that is just my valuation from experience) with limited POA and was doing the above, that they were "insider trading".

    I was never able through any means to obtain their software that they used for tracking stuff.

    DU means Dry Up which is just a low volume for stocks that are mostly static before periodic break outs. It is an anticipatory trading indicator that beginners can esaily use to time markets.