Baldwin,
I said IF any company insider sold into the rally today they should go to prison. Admittedly an overstatement on my part, but as the news prior to the market's open was unquestionably positive for TLAB, and the cautionary outlook in the CC so obviously negative for a company that was used to beating earnings estimates, that if any insider, knowing that information, sold into the rally, I would be quite surprised if they didn't find themselves answering questions from the SEC.
As far as dishonest management goes, well, this isn't in ASND's league, but I sure do feel bad for anyone who bought on the rally this morning. They definitely have a lawsuit on their hands. I'm neither long nor short TLAB, so I have no financial interest in this, but the timing of the announcements this morning sure has raised my eyebrows, as I'm sure it has yours. If nothing else, it was a huge PR blunder, and I assure you the Street will punish them for it. If the Street's reaction appears outsized, they are probably driving home this message already. The Street does not like surprises. They reward management that guides them unerringly to the earnings number and warns immediately of any material change in outlook. I would find it hard to believe they did not know of the earnings shortfall before the market opened. They probably did not violate any securities laws, as Tom pointed out, but the PR damage is sizeable.
Regards,
Paul |
