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Strategies & Market Trends : CAVALRY'S SHORT BUSTERS - MAGIC EIGHTBALLS PICKS -- Ignore unavailable to you. Want to Upgrade?

To: Cavalry who wrote (396)	9/15/1998 5:53:00 AM
From: EL KABONG!!!	Read Replies (2) \| Respond to of 1637

Cavalry, what is insider trading Insider trading is trading on relevant knowledge not available to the general public. Trades can be long or short, or they can be on derivatives, options, futures, bonds, etc, not just stocks. Loosely translated, it means trading with an unfair competitive advantage by possessing sensitive information about the company not available to other investors. what is good dd from calling a company Good DD normally does not involve calling the company. When you're looking at bigger firms (not OTC-BB and "pink sheets"), chances are you're going to get through to an IR or a PR person (not an executive), and they're not going to do much other than send you a copy of the annual statement and maybe answer some questions by quoting from existing press releases. If you're talking about the small BBs and PSs, then calling the company is even more fruitless. Many (not all) of the smaller companies are outright frauds and scams. You can't tell the difference between a good company and a scam company just by talking to a company insider. So just assume that they're all scams to start your DD and go from there. Take everything they say (even in a press release) with a grain of salt. Keep copies of all press releases. Look closely at their SEC filings. Look at audited numbers only. Independently verify everything that you can. Never listen to the hypers on the threads who seem to have all the answers to everything. Listen to what the so-called "bashers" (including known shorters like Asensio) have to say because, generally speaking, they know what they're talking about. Anything that a company insider might tell you in private is worthless unless it's in a filing or a press release, and if you can get the information there, then why bother calling the company in the first place? After all that, if you still like the company, then place your bets. i know taking shares or money to promote a company is a major no no. You don't have to take shares or money to have committed a major no-no. Let's say your father publishes a stock newsletter called "Cavalry's Father's BB Picks", and let's say he is compensated by these companies, and let's further say he properly discloses that information in his newsletter and on his web site. Let's also say you're not involved with his publication at all, and in fact, you paid a subscriber's fee like everyone else. If you go and hype his newsletter and/or any of the stocks he's accepted compensation from, you must disclose those facts each and every time you post (hype) those companies. It's a special situation rule that presumes that you want to see your father be successful, so therefore you are deemed to have an interest in his success. ceo's of these bb's love to brag, when am i being given insider info if ever. what can they tell me legally and when are they leaking insider info. If you post what you're told by a company insider before trading on that information, could it still be considered insider information, and since you publicly posted it prior to trading, did you engage in insider trading? The courts haven't answered this one yet, that I'm aware of. If a CEO is giving you information not publicly disclosed, would you feel comfortable investing in his company? What did he tell other callers and what did they do with that information? More importantly, what did he tell them that he conveniently "forgot" to tell you? Generally speaking, a CEO will only divulge things like his vision for the company, the company's direction and other type of information already available in the company's prospectus, filings and/or press releases. also when can an ir guy tell you news is coming. after it is sent to wire as long as he doesn't tell you the contents? or never till it hits the wire? It's really a gray area. I suppose under the strictest of interpretations, the IR guy should never tell you anything that hasn't already been publicly disclosed. But to merely say to you in the most generic of terms, that a company press release is forthcoming, and never revealing the subject of that press release... Who knows? Again, I'd ignore anything they say until it's actually made public. I wouldn't even post it as a rumor. KJC