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Author Topic:   That Evil Martha Stewart
Alien Investor
Assimilated

Posts: 382
From: New York City
Registered: Jan 2000

posted June 24, 2002 11:48     Click Here to See the Profile for Alien Investor   Click Here to Email Alien Investor     Edit/Delete Message   Reply w/Quote
Martha Stewart is the #1 story on Wall Street today for trading IMCL, and it's not a good thing.

I think she's gonna get crucified. Not for her specific actions, but as a scapegoat. Tens of millions of people who have lost money in their 401k(s) in the past few years are looking for blood (could it be their own responsibility for the investment decisions that they made? Naah).

Look at her defense: "I had a stop loss order! Well, okay, it was an informal verbal stop loss order". That's weak. Even if it were true -- and I don't think that it is -- Joe and Jane 401K voter don't even know what a stop loss order is. And they don't care. They will view it as a technicality.

There's a right way to trade stock in a situation like this. The right way is to have written orders, up front, with a big paper trail. If Merrill Lynch could produce the stop loss order, and if it were dated 3 months before Martha's trade in IMCL, then neutral journalists and commentators could explain that Martha had actually done nothing wrong, she wasn't trading on her connections, she was trading on the same information that everybody has access to (the stock price). She'd have a leg to stand on. She'd still be a scapegoat, but she'd have a strong defense. Because a stop loss order is inherently based on PUBLIC information, the stock price, which would mean that she was playing by the same rules as me and everybody else.

But Martha can't produce the stop-loss order. It's a matter of public record that she did a TRADE. Nothing wrong with that; I've done 90 trades this year already. But in my opinion, she did it on NON-PUBLIC information. That information was definitely MATERIAL. And TRADING on MATERIAL NON-PUBLIC information is a felony.

I think this is going to get ugly. It's not just Martha here. I bet that the SEC is going to check the trading in dozens of biotech and drug companies and scrutinize all the trades that happened just before the FDA news on Imclone became public.

Here's my guideline for trading a stock that has a lot of news volatility: look at the news on the company for the past year. If there is a lot of price movement before the news comes out, the market in that stock is crooked. If there is a lot of price movement after the news comes out, the market in that stock is clean.

And the FDA itself probably needs some improved security and improved disclosure rules. When the FDA makes a decision about a product of a publicly traded company, I believe the FDA should issue its own news releases so that everybody sees the information at the same time, instead of giving the company executives a window of temptation.

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Colonel Panic
Mini-Geek

Posts: 50
From: Des Moines, Iowa
Registered: Mar 2002

posted June 24, 2002 12:23     Click Here to See the Profile for Colonel Panic   Click Here to Email Colonel Panic     Edit/Delete Message   Reply w/Quote
I think Martha should be crucified, just on general principle.

The big question being, who would accessorize her execution?


Colonel Panic

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macadddikt18
BlabberMouth, the Next Generation.

Posts: 1739
From: In a world beyond your understanding
Registered: Jan 2002

posted June 24, 2002 19:47     Click Here to See the Profile for macadddikt18   Click Here to Email macadddikt18     Edit/Delete Message   Reply w/Quote
i have a feeling i may not know what to do with out Living in the morning. I mean, i have this strange urge to sit and watch her show. Gosh, knows it is dumb enough. Wait, what am i saying, hang that whore out to dry. I can live, i think..............
Nayt

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Nayt: making interesting posts boring since Jan 02

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Erbo
Super Geek

Posts: 158
From: Denver, CO, US
Registered: Jan 2000

posted June 26, 2002 10:03     Click Here to See the Profile for Erbo   Click Here to Email Erbo     Edit/Delete Message   Reply w/Quote
I think Evil Lord Martha Stewart is going to need this site sooner than anybody thinks.

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Colonel Panic
Mini-Geek

Posts: 50
From: Des Moines, Iowa
Registered: Mar 2002

posted June 26, 2002 12:44     Click Here to See the Profile for Colonel Panic   Click Here to Email Colonel Panic     Edit/Delete Message   Reply w/Quote
TIME, with Martha Stewart.

--Putting a softer edge on doing hard time.

Well, somebody had to deal with those awful horizontal stripes and orange outfits.

Colonel Panic

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xobender
Alpha Geek

Posts: 292
From: Carrot Colony on Lagoon and Irving.
Registered: Mar 2001

posted June 26, 2002 16:07     Click Here to See the Profile for xobender   Click Here to Email xobender     Edit/Delete Message   Reply w/Quote
quote:
Originally posted by Colonel Panic:
I think Martha should be crucified, just on general principle.

The big question being, who would accessorize her execution?


Colonel Panic



Hear! Hear!

I have some old black teeshirts and jeans she could wear for the black heart she has and maybe some old dead boots also for that long walk down stairs , well since she going somewhere warmer how about a pair of moldy black shorts ?

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ilovemydualg4
Alpha Geek

Posts: 311
From: *GASP* THE 3RD DIMMENSION
Registered: Mar 2002

posted June 27, 2002 04:02     Click Here to See the Profile for ilovemydualg4   Click Here to Email ilovemydualg4     Edit/Delete Message   Reply w/Quote
eheh, i was gonna post this but i guess you beat me....
this is paraphrased from abc news

(on martha's set)
Reporter asks some question
martha: Well, I don't know about you, but this salad is an absolute must
Reporter-another question
martha: [continues dicing cucumber]Now look at how niiiice this is turning out!

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my geek code
Hazards: "There is an island of opportunity in the middle of every difficulty, miss that, though, and you're pretty much doomed."

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