More Blatantly Obvious Fraud! Hello, SEC, You Are Useless.

Discussion in 'Trading' started by ByLoSellHi, May 3, 2007.

  1. Suspicious Options Trading Preceded Both Monster Worldwide's and Dow Jones's Recent Run-Ups

    Posted on May 3rd, 2007 with stocks: DJ, MNST

    FP Trading Desk submits:
    According to Jim Cramer of CNBC's "Mad Money" television program, heavy activity in Monster Worldwide Inc. (MNST) stock options indicates that a buyout is in the works. On this afternoon's CNBC "Stop Trading" segment, Cramer commented by saying there must be a leak about a possible Monster tie-up with either Google Inc. (GOOG) or Gannett Co. (GCI) in the next month, hinting that such a deal could lead to a share price of $60. The stock closed higher by $3.80, or 8.63%, to $47.83 on heavy volume of 18.59 million shares, compared to daily average trading of 2.91 million shares. A quick check at the option volume for May and June calls with strike prices between $45 and $55 per share shows a tremendous amount of activity, a sure sign that investors are betting on a higher stock price.

    What's interesting is that the Monster options activity is quite similar to trading in options to buy shares of Dow Jones & Co. (DJ) before it was announced Tuesday that Rupert Murdoch's News Corp. (NWS) would launch a $5 billion bid for the company equating to about $60 per share. At the time, Dow Jones shares were trading barely above $36. According to Bloomberg, no more than 728 call-option contracts on Dow Jones shares had traded in a single day in April. However, options trading volume shot up to 3,029 contracts on April 25, substantially higher than the 20-day average of 309 contracts, days before the bid was disclosed. Following Murdoch's announcement, some of those contracts have appreciated by as much as 48 times their original value. Regulatory authorities including the Securities and Exchange Commission and the Options Regulatory Surveillance Authority will no doubt be looking at these suspicious trades to determine if there has been any insider trading.
  2. S2007S


    Seems there is nothing they can do about it.

    Happens everyday.
  3. And the put option volume on airline stocks before 911?

    I bet the elite bankers made a killing (no pun) from it. Why investigate your own cronies and risk having a "suicide"? :(
  4. Good timing (if it isnt a fraud)
  5. Speculation?! In the markets?!?! I'm appalled! :D

    From April 13th:

    Barron's Online
    April 13, 2007, 10:55 am
    Monster: CEO Change Raises Speculation Company Could Be Sold
    Posted by Eric Savitz

    Yesterday, (MNST) announced that Sal Iannuzzi has replaced Bill Pastore as CEO. It was a curious move; Pastore had only held the job since October, though he had been COO since October 2002. There was no real explanation for the change; the announcement only said that Pastore “will leave the Company by mutual agreement with the Board.”

    Ianuzzi is best known for his tenure as CEO at Symbol Technologies, where he lead a turnaround and eventually sold the company to Motorola (MOT).

    And therein lies the explanation for the stock’s jump on the CEO change. “Iannuzzi is well regarded by many for his turnaround and subsequent sale of Symbol Technologies,” Robert W. Baird analyst Mark Marcon noted in a research brief this morning. “Perceived probability of strategic alternative, including potential sale, has increased - a positive for the stock.”
  6. This has been debunked numerous times. If you're too dumb/paranoid to research the story that's your loss.
  7. Unfortunately the pre 9/11 put option trades have NEVER been dubunked.