Knowing he was trading on insider information, Duic realized it wouldn't be smart to use his own phone. Someone could be monitoring calls to offshore banks.
Because few Irwin Toy shares changed hands daily, Duic told his broker at Banque Baumann & Cie, Leopold Kenens, to "subtly" buy as many as he could without drawing attention. "It was my intent...to fly under the radar," Duic later testified.
But the broker, whose command of English was evidently imperfect, didn't understand the word "subtly." Back at his office, Duic flinched in horror as he saw a trade flash on his computer screen that was about as subtle as a siren. As far as Duic could see, his broker had "executed probably the largest block trade in the history of Irwin Toy....I knew the party was over."
"At an elite boy's school like Upper Canada College, the presumption of power is bred in the bone. Surrounded by the trappings of privilege once he achieved power himself, Rankin didn't think hard enough about the law ...."
http://bloomberg.com/apps/news?pid=2060 ... refer=home
`Suspicious' Trades Precede Most Big Canada Mergers, Study Says
By John Kipphoff and Joe Schneider
March 22 (Bloomberg)
...That unusual trading wasn't so unusual for the Canadian market. Aberrant trading patterns preceded 33 of the 52 Canadian mergers valued at more than C$200 million ($172.6 million) last year, says a study by Measuredmarkets Inc. for Bloomberg News. Those patterns could indicate insider trading.
``Insider trading goes on all the time,'' says Stephen Jarislowsky, 81, chief executive officer of Montreal-based Jarislowsky Fraser Ltd., which manages about C$63 billion. ``There's no real surveillance.''
The rate of unusual trading found in Canada -- 63 percent -- was higher than in the U.S.
First of all, if you are a value investor, this should not impact you seriously. If you are a market timer, then I recommend you follow the insider trading reports and jump in when you see a serious uptick. One caution: lots of insider trading is the result of options expiring, trading lockups expiring, and asset allocation models being followed.petermed wrote:...How's an Outsider going to beat the "odds" in favor of the Insiders? It would seem to me that the first thing an investor would need to know is: is there Insider Trading and manipulation in the investment vehicle I am considering? How does one find that out? Canadian regulators don't seem to care.
Insider trading usually just accelerates what the market is likely to do anyway. It can hurt you as a market timer (but it might improve your profits as a day trader because of more rapid swings) but it will not hurt a value investor because downward swings are considered temporary and you ride them out.investoid wrote:...So, even if you're a value investor and have done your due diligence, you can still be materially affected by insider trading (both positively or negatively).
kcowan wrote:Insider trading usually just accelerates what the market is likely to do anyway. It can hurt you as a market timer (but it might improve your profits as a day trader because of more rapid swings) but it will not hurt a value investor because downward swings are considered temporary and you ride them out.
investoid wrote:I don't see how that 'accelerates' anything. If the stock's illiquid then I can see how insiders trying to take advantage of private information would accelerate the movement in a stock since they will materially affect the buyer/seller market, but if it's a large cap company with high volume then it's unlikely anything would be noticed by the market.
...So, even if you're a value investor and have done your due diligence, you can still be materially affected by insider trading (both positively or negatively).
Nice to be back after a four month bouth with a bacteria infection which was most difficult to shake.
Actually it made me realize again how fragile life really is.One day you are sailing alonng at a clipping pace and boom some sickness wacks you.
I am back in action now none the worse but a little wiser.
The ironic part of my iillness was it was picked up in the few chartible volunter jobs I do.
I sat on a patients bed to read to him for about 10 minutes and within 3 weeks I had his malady.
U got to admit the judical system is Canada is a horse's arse.
Breaking News from The Globe and Mail
Pet food insider sold shares before recall
Tuesday, April 10, 2007
The chief financial officer of Menu Foods Income Fund says it's a "horrible coincidence" that he sold nearly half his units in the troubled pet food maker less than three weeks before a massive recall of tainted pet food.
Insider trading reports show that Mark Wiens sold 14,000 units for $102,900 on Feb. 26 and Feb. 27. Those shares would be worth $62,440 today, based on yesterday's close of $4.46 a unit.
That represented 45 per cent of Mr. Wiens's units. After the sale, he still owned 17,193 units and options to purchase 101,812 units, according to insider trading reports.
"It's a horrible coincidence, yes . . ." Mr. Wiens said yesterday.
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