Aces High Bulletin Board
General Forums => The O' Club => Topic started by: midnight Target on June 04, 2003, 05:32:42 PM
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It's a Bad thing.
(http://www.msnbc.com/news/wld/business/brill/images/030604_stewart_app.jpg)
Martha was a bad bi*** (http://www.msnbc.com/news/922014.asp?0dm=N12NB)
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I was one of the millions of suckers holding Fidelity mutual funds when this happend. Why weren't the hedge fund managers who were tipped off by Waskal indicted also?
SLATE.COM
Outsider Trading: How Martha Stewart Beat Fidelity
By Carol Vinzant
Posted Wednesday, July 10, 2002, at 3:03 PM PT
Martha Stewart's wasn't the only interesting call ImClone CEO Sam Waksal received on Dec. 27. On Dec. 26, Waksal had learned the FDA wouldn't approve his cancer drug Erbitux. He (and perhaps others) allegedly warned enough holders of ImClone stock that their exodus caused the price to fall, alarming other investors. The House committee investigating ImClone has procured Waksal's Dec. 27 phone log. What's remarkable about the document is who did call, and who didn't.
These days, Wall Street is thought to be a (relatively) level playing field for ordinary investors. Little guys are guarded by investor protection laws passed since the crash of 1929. More important, ordinary investors now have pros on their side, brokers and mutual-fund managers whose control of billions of dollars is supposed to give them insider access. This didn't help in the ImClone case.
ImClone's biggest investor, aside from Bristol-Myers, was Fidelity, the Boston fund behemoth that represents 17 million investors. Fidelity held a whopping 15 percent of ImClone shares, worth as much as $750 million at their peak. According to mutual-fund researcher Morningstar, Fidelity kept most of its ImClone in eight funds, with the biggest stockpile—nearly 6 percent of ImClone—comprising 1.3 percent of Fidelity Growth Company, one of America's 20 biggest mutual funds. We may be pondering for years who got an ImClone tip, but Fidelity sure didn't. Fidelity has a reputation of throwing its weight around, but no one at the mutual-fund company called Waksal on Dec. 27, according to the phone log. Nor does any other mutual-fund manager appear in the log.
Fidelity got killed by ImClone's collapse. As of Fidelity's May 31 SEC filing, it still held 9 percent of ImClone. Alpha Equity Research CEO David O'Leary, a leading Fidelity watcher, figures that Fidelity has lost about $600 million by not getting out at the peak. (The stock traded at $75.45 in November, but closed Wednesday at $6.52. However, the filings don't make clear when or what Fidelity may have sold.) O'Leary says Fidelity was likely trusting the wisdom of Bristol-Myers, which didn't get cold feet till spring. If the ImClone hit were distributed equally around Fidelity (which, obviously, it wasn't), that $600 million would translate to a $34 loss for every Fidelity investor. So if you're wondering who was hurt by the possible insider trading at ImClone, look no further than your own 401(k) plan.
Your fund manager wasn't chatting up Waksal, but hedge-fund managers were. At least three hedge funds appear on the Waksal call list: Ziff Brothers Investments, Merlin BioMed, and SAC Capital. While the typical mutual-fund investing household makes just $62,100 a year, hedge funds generally require at least $1 million to invest. Two of the hedge funds that called on Dec. 27, SAC and Merlin, were actively trading in ImClone, according to Dec. 31 filings with the SEC.
Waksal's secretary took a message from Stuart Weisbrod, the chief investment officer of Merlin BioMed: "re: shares?" Weisbrod, who used to be a famed pharmaceutical analyst, did not return a request for comment. SEC filings show that on Dec. 31, Merlin BioMed held ImClone "put option" contracts (which are bearish) valued at $4.6 million, along with $1.8 million in ImClone stock.
The call from SAC Capital was turned over to someone at ImClone named Andrea. A spokesman for SAC said that the call was forwarded to investor relations but not returned. "There was no call. There was no conversation," the spokesman said. SAC are the initials of the fund's founder, legendary trader Steven A. Cohen, the most powerful person on Wall Street you've never heard of. SAC is well-known for leaning on trading desks for the latest information on companies.
SEC records show that SAC also held both ImClone stock and options betting against it on Dec. 31, the first trading day after the FDA announcement. The current amended filing shows that SAC had a long position of $17.9 million and $1 million in options betting against ImClone. It's impossible to discern from this snapshot what SAC's strategy, profit, or loss was.
In short, Waksal's phone log represents queries from the rich—most famously, of course, Martha Stewart, but also Carl Icahn—and from people who manage the money of the rich. (While some of the calls seem personal, others must now be making the people who made them cringe. "Is it time yet?" asked a 1 p.m. message from Robert Takeuchi, president of Softbank Finance, a Japanese venture firm. Softbank had invested $10 million in Waksal's Scientia investment fund.)
And at least two of those calling directly to the CEO were major Wall Street investors who would soon play the stock. This is exactly the kind of behavior and special advantage that the SEC's recent Regulation Fair Disclosure, or Reg FD, was trying to prevent. The purpose of last year's rule was to ensure that "all investors, large and small, should have equal access to material information about a public company at the same time."
Frank Heflin, an assistant management professor at Purdue University who studies Reg FD, said the legality of the calls would hinge on what was said. Still, calling the CEO seems odd. "I'm kind of struggling to think of an example of something [they could have talked about] related to the company that was not in violation of Reg FD," Heflin said. "Why spend the time and the trouble to ask if you don't think you're going to get something out of it?"
Clearly those who called Waksal had confidence or, at a bare minimum, hope he would reveal something about the company. This is a sign of how unfair Wall Street still is: Ordinary investors, perversely, should be asking why their mutual funds didn't make the same sleazy calls.
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it will be fun to watch her new show
"Martha Stewart, Prison Living"
she will show how to spruce up your solitary cell.. what kind of perfume goes with gang rape and how to turn your mail into a shiv:p
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She has it shes a Democrat too, why do they allow democrats to partake in the American Dream of investment? :mad: They're supposed to be socialist re-distributing everyones hard earned money! :eek: :confused:
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On the Pro side, Prison food will never taste better....
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Yawn......................zzz zzz
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rich black ex-pro football player slices and dices two ppl to death and walks the streets
rich snobby stupid white b*tch sells a few shares illegally and everyone screams for her head
think it's more about her status than her actions ...
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think it's more about her status than her actions ...
No, I think it's the fact that she's got a reputation as a not very nice person. I've heard that she treated her employees like slaves.
The American public enjoys seeing people that like "get what's coming to them".
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Originally posted by banana
No, I think it's the fact that she's got a reputation as a not very nice person. I've heard that she treated her employees like slaves.
The American public enjoys seeing people that like "get what's coming to them".
nah, if she wasn't rich as crap - no one would care how she treated her slaves - being white is also a strike against her - think Opra would have the same problems (same media smear/magnitude) if caught doing the same thing ? not me ...
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No more hacking threads, or there won't be anyone left to post anything!
(http://www.onpoi.net/ah/pics/users/ah_55_1054823622.jpg)
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Yea, Those Black people sure have got it made here in America...:rolleyes:
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Originally posted by Eagler
nah, if she wasn't rich as crap - no one would care how she treated her slaves - being white is also a strike against her - think Opra would have the same problems (same media smear/magnitude) if caught doing the same thing ? not me ...
You funny guy, Eagler. I'd like to meet you in person sometime, to see what an oppressed white guy looks like. I've never met one yet.
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Originally posted by banana
You funny guy, Eagler. I'd like to meet you in person sometime, to see what an oppressed white guy looks like. I've never met one yet.
He's kinda short, wears glasses, wears black socks with garters and Bermuda shorts and has an immaculate yard complete with plastic lawn flamingos and plaster deer statues. His wife nags him, his children don't respect him and his neighbors are jealous of his new golf cart. Typical oppressed white guy.;)
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Its interesting reading about Martha...she plays it up as the victim of the Government....but from what I've read in the charges (40+ pages)...her lying and evasiveness is what is landing this thing to trial. Not so much insider trading, but her misrepresentations and lying to authorities. She editted and re-editted her phone logs a few times...c'mon!
If she fessed up, plead guilty, served her 30 days in Club Fed, it would be over and done with.
She dug the hole.
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Originally posted by LePaul
Its interesting reading about Martha...she plays it up as the victim of the Government....but from what I've read in the charges (40+ pages)...her lying and evasiveness is what is landing this thing to trial. Not so much insider trading, but her misrepresentations and lying to authorities. She editted and re-editted her phone logs a few times...c'mon!
If she fessed up, plead guilty, served her 30 days in Club Fed, it would be over and done with.
She dug the hole.
Well, Hiillary got to edit her "logs" and billing records, didn't she? Plus she got to lose them and then find them and then lose them again and then find them again, didn't she? So why can't Martha? And Hillary made 100,000 in one day on futures, didn't she? She was not indicted was she?
And as for the uber-b#tch contest, I see the two as in a total dead heat. So why the difference?
But, there will be some good come out of this. Saturday Night Live will have a field day!
:D :D :D
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Nah, I am NOT trolling.
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NO!
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I am not, Am Not Am Not!
:eek:
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Originally posted by Airhead
He's kinda short, wears glasses, wears black socks with garters and Bermuda shorts and has an immaculate yard complete with plastic lawn flamingos and plaster deer statues. His wife nags him, his children don't respect him and his neighbors are jealous of his new golf cart. Typical oppressed white guy.;)
you still carrying around that pix of me :)
never said I was oppressed - wank
never said they did MT
MS broke the law, she should pay - just don't think it's front page, 24/7 news and if she was Opra she'd stand a better chance at beating the rap
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You need much stinkier bait there Syz... and the presentation is VERY important.
Aside from that I'm gonna be working on the Hillary for President campaign committee. I think she is probably the brightest light we have in terms of placing a capable woman in the White House.
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Originally posted by midnight Target
You need much stinkier bait there Syz... and the presentation is VERY important.
Aside from that I'm gonna be working on the Hillary for President campaign committee. I think she is probably the brightest light we have in terms of placing a capable woman in the White House.
ROFLMAO!
Good one Tahg! Much better presentation too! But, it isn't believable enough. You gotta be believable too! Everyone knows that if she's the brightest light, it must be cave dark in the Democratic Party.
er, uh, well maybe it is!
:D :cool: :D :cool:
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Yeah, a black person does always have the option to play the race card. Of course, they have to have someone to play it against...OJ was lucky enough to have Fuhrman. You'll also notice that the race card is being played against the University of Michigan for their admittance policies...it's a white girl suing because of affirmative action nonsense.
Also, Martha Stewart is wildly famous. Even if you don't like her, you know exactly who she is and what she does. It was huge news when she did the IPO for her company, and it's huge news that she's being indicted for insider trading. That's why she's "on the front page".
SOB
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Hey Sixpence what SIM is THAT Screenie FROM? X-Plane?
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Insider trading is like masturbation everyone will deny the act but privately they can't get enough.
If lightning were to strike down everyone guilty of that crime there would be only crickets chirping on the trading floors.
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Originally posted by Eagler
MS broke the law, she should pay - just don't think it's front page, 24/7 news
Yeah, it's depriving us of blow by blow accounts of the case of the purty boy killing his purty wife and baby in California. Now that's worthy of 24/7 coverage!
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Originally posted by Arfann
Yeah, it's depriving us of blow by blow accounts of the case of the purty boy killing his purty wife and baby in California. Now that's worthy of 24/7 coverage!
another case where race will hurt the guilty not help..
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I think we should all feel safer with her off the streets.