Hi Vincent,
It's a bad time for CEOs during earnings annoucement events. If they
are overly positive with their outlooks and the business goes south
they are accused of hiding something and the litigation hungry
lawyers come out of the woodwork to initiate class actions. If they
are cautious in earnings estimates they get eaten up by the shorts,
momentum day traders and MMs that start the herd to a mad dash
towards the exits. The result is massive overnight erosion of the
stock price! As the price drops, drops, and drops, the smart big
money is picking up everybody's shares dirt cheap at your expense. We
are so lucky to have option tools to guard against such market
tactics.
So Vincent, in like manner to TLAB, SMOD is being pumped up by the
MMs for the setup. I can't imagine the CEO having anything positive
this early in the recovery. What? The CEO already came out with
warnings for the balance of the year not too long ago. That prompted
the SMOD law suit in progress. The CEO is walking a fine line at best
between positive and negative outlook. Even a neutral statement will
still be an excuse for the bears to pound SMOD back down to the
recent low ($12) and then some!
I picked up 10 each OCT 12 1/2 PUTs @ 1/4 two weeks ago. If SMOD
dumps to $12 those 1/4 PUTs could be worth $4 to $5.
Take a look at what AJAY paid for thousands of shares! TWO CENTS
each! This guy is one greedy CEO. ALL THE Ms below are exercised
options. The shareholders eat massive losses in their stock and this
guy (the the rest of his gang)gets to buy stock at two cent a share!
No wonder the market makers and institutions will punish SMOD dearly.
They will short against the box to lock in their profits and then
turn around and short the stock to make a quick profit from the
plunge. Hey, I don't own any SMOD stock and I'm wondering about the
CEO windfall. They own millions of shares. What gives? TIMBER!
I may have consider picking up another 10 SMOD OCT 12 1/2 PUTs over
the weekend!
Filed Action Shares Price @ $ Date Filing Date Trans. Holdings
KRISHNAN LATA Holdings 07/10/98 8,272,500
KRISHNAN LATA Holdings 07/10/98 1,840,000
SHAH AJAY B H Holdings 07/10/98 1,840,000
SHAH AJAY B H Holdings 07/10/98 8,272,500
MARTEN ALAN O Holdings 07/10/98 399,200
PATEL MUKESH H Holdings 07/10/98 1,840,000
PATEL MUKESH H Holdings 07/10/98 5,065,000
KRISHNAN LATA Acquired 300,000 $0.02 06/15/98 07/10/98 M
SHAH AJAY B H Acquired 600,000 $0.02 06/15/98 07/10/98 M
PATEL MUKESH H Acquired 130,000 $1.65 06/15/98 07/10/98 M
PATEL MUKESH H Acquired 600,000 $0.02 06/11/98 07/10/98 M
PATEL MUKESH H Acquired 170,000 $1.65 06/11/98 07/10/98 M
MARTEN ALAN Acquired 35,000 $1.50 06/08/98 07/10/98 M
MARTEN ALAN Acquired 35,000 $0.02 06/03/98 07/10/98 M
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