SEC ALERT* Cramer Show Insider Leak....

Discussion in 'Trading' started by stonedinvestor, Mar 17, 2007.

  1. Only a follower and formally burnt investor of Nastek Pharma would notice this...

    After blowing a qtrs's earnings and cresting to new lows with price targets reduced this stk was deader than dead. Friday at around 1:00 unusual volume begins to come into the stock-- on a sleepy friday afternoon for no reason the stock soars a buck! That type of move this stock hasn't seen in 3 months- ends with a nice 8% up day. WHY? In the after hours market it accelerates even more up another 65 cents or 6% What is going on 14% DAY!!!!!
    7:45 that night Cramer does a big push on NSTK.

    I'm going to say there is now a leak at Cramerworld one of his asst producers I'm sure... but the info is being disseminated in a large way. The SEC should look into every big block trade Friday afternoon on NSTK and backtrack through the brokerage that got the tip.
  2. Im sure Cramer is giving someone advance notice but Im not sure this is illegal. They even give a disclaimer at the beginning of the show to that effect.
  3. Unless it's Cramer himself. I guess it would be illegal then, wouldn't it?


  4. You just realized this? This has been going on since the begining, its not new.
  5. Geez do I have to take you all the way back to Dan Dorphmen! If you are a CNBC show you are held to the same standards as BW mag and the scandal their a few years back. This Is illegal! And the site of my flabby armed friend being perp walked in leg chains is going to do my eyes some good.
  6. Unless Cramer is an insider or it can be shown that Cramer was given information from an insider which was not public (and I doubt this... Cramer's a buffoon, but he's not stupid), there is nothing illegal here.

    Touts from non-insiders are not illegal.
  7. sprstpd


    Getting information about a tout before everyone else is illegal right? I mean, didn't they bust the postman who was looking at the advanced copies of BusinessWeek a long time ago? How is this any different? Not that I trust the SEC to get anything right.
  8. It's only illegal if the SOURCE was from an insider and not yet public. Anybody can tout. Anybody can act on a tout.

    The "postman bust" is a myth. BusinessWeek is not an insider. Any info disseminated to BusinessWeek would have been deemed to have been "public info", regardless of when BusinessWeek hit the newstands. However there have been cases of document printers being busted because they acted upon info in not-yet-public disclosure documents.

    Investment Advisers who sell services for a fee are NOT allowed to act "in front of their recommendations/touts"... this is a regulatory biggie. That is, an analyst firm is not allowed to buy ABC Pharma, then make a public recommendation to "Buy ABC Pharma".
  9. sprstpd


    Are you positive about this? So I could run an upgrade/downgrade service and have my family trade on my touts before anyone else (or the moment I put them up on a website somewhere)? Then it wouldn't be illegal?
  10. sprstpd


    #10     Mar 17, 2007