Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Ciena (CIEN) -- Ignore unavailable to you. Want to Upgrade?

To: sam who wrote (4831)	11/1/1998 9:03:00 PM
From: uptick	Read Replies (1) \| Respond to of 12623

Insider trading law is an interesting topic but not relevant to a CIEN board. Briefly, it prohibits insiders such as company's officials, bankers, printers to trade or tip such info. Is it illegal? Yes. Can it be done? From what i've seen...Yes. It all depends on who's doing what, when, and how. It's more about market efficiency and less about whether the SEC's doing its job. Ever notice the call options volume before BP-Amoco? Freddy Myer-Kroger? Daimler Chrysler? With tough insider trading laws, shouldn't they be pretty flat? There's been alot of activity in CIEN's nov calls, but it's more due to people coat-tailing contract/merger rumours. options.marketwatch.com

To: sam who wrote (4831)	11/1/1998 10:15:00 PM
From: Sr K	Respond to of 12623

<<I use to work for the SEC>> It is certainly not illegal to profit from inside information. First of all the rules are about trading on inside (material, non-public) information. If you hold a position and learn something and do not trade (hold when you otherwise may have sold) there is absolutely no prohibition or requirement to return any profits to the company. Most of the law in this area is about insider transactions. Of more relevance here, it was legal by current law for the Ciena board to reprice options at 12 3/8 despite having inside information including (1) seasonal supply-demand imbalances including which funds were dumping positions to clear their books for their October 31 fiscal yearends, (2) certain contracts are about to be closed and have not been announced, (3) the final or near-final contents of the presentation for November 4, and (4) the revenues, earnings and cash flow to-date 12 weeks into the 4th quarter.