Catchy title for a post, and my bet is that the CEO may be "testing the rumor mill." I've also been in the presence of many high level executives of a company with 50,000 employees and this kind of info is typically discussed offsite, and there is usually no email trail, etc. Having said that, I would have to wonder what Maria Bartiromo at CNBC did between when she had dinner with Bernake Saturday night last month and blurted out that Bernake said he was misunderstood 1/2 hour before market close. Then Bernake admits "he had an error in judgement ?" Love to know how many short positions were being created that day ! Even if the CEO is level, I agree he (or she) is lame. I have a real complaint, if you can't tell, at the amount of trading being done with info that you and I don't get. Opportunity knocks, but so does BS.
I could tell some tales. But, there is this thing called the food chain. This guy's earnings are no secret. Think of his suppliers and their order cutbacks. Think of the sales representatives that didn't hit their numbers. Up and down the line purchasing agents are aware. This list is huge, outside the company. Insider trading, maybe. A secret, not hardly. Consider yourself on the pheriphery of the information and act on it, just don't make too big a splash in the pool. Enjoy. --jeff
I have heard the way CEO's pass info like this all the time and don't get caught is too pass it to one person then he passes it and then that guy trades off it. If you think it's good then give it to someone and have them give it to someone to trade off of. Report back what happens.
This isnt a " miss" based on slowing sales or something. This will be an ongoing increase in expenses, which def has not been factored in by the street. If you read my OP I had stated that I have heard the "I have inside info" chit forever and never put any credit in any "tip' I have gotten. However, this is definitely different. I thouhgt about acting on it, but realized unless I can make millions it wouldnt be worth it. That is why I posted, wanted to see what you guys would do.
I receieved 4 PM's on this topic, they were of a "looking out, dont do it" tone. In answer to ur previous question the guy knew I was in the industry, but not what capacity. It was a very matter of fact comment that lasted maybe 30 seconds.