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To: Katt-000 who wrote (25266)4/13/1999 2:54:00 PM
From: The Swordsman  Read Replies (1) | Respond to of 44908
 
Selling into news is really not unusual. But if someone has inside info long enough before the release/s they can have someone accumulate far more shares than would be possible with ordinary advance news leakage.

Then it's the quantity of selling and the resultant imbalance with the MM's that will keep a professionally worked share price down.

Kinda turns into a playground for a privileged few while the ordinarily longer term investors get impatient and leave. Thereby creating a sharper and almost forecastable decline. This permits the buying to begin once again in earnest, awaiting the next timing of news volley's.

Then the cycle repeats itself over and over again, all the while the little investor get's her clock cleaned.

I once had an acquaintance that did this for about a year. Was caught big. Civil penalties only. Cost him millions of dollars. Triple penalty based upon the money made or saved with the info. Would have had criminal added but was believed to have acted alone. A conspiracy couldn't be proven. We didn't know about him until he made the papers.

I'm not saying that's what's happening here. That couldn't be done unless the trading patterns/news releases/volume and share price action were fully analyzed by a professional. And even then you need a target and copies of trading records and such. Usually, these things never come to light unless someone turns someone else in for a bounty or immunity.

Sword.Com