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Woah, Momma. Cuban facing insider trading charge.

Discussion in 'Sports and News' started by sabrefan, Nov 17, 2008.

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  1. Beef03

    Beef03 Active Member

    Re: Woah, Momma. Cuban nailed for insider trading.

    The thing is I even hit the spell check, so I'm at a loss.

    But thank you all for the help. My only question now is, upon hearing this information, say he didn't seek it out but someone phone him up and says this is going down, dump your stock. Is he just supposed to sit on his hands and take the hit? I'm all for the open and fair market, but if my scenario is correct (and chances are I am more than likely about as far from the truth as one can get) I'm not sure if I act differently. for something of this level is he looking at Martha Stewart time in a white collar resort prison? or could he face worse?
     
    Beef03, Nov 17, 2008
    #13
  2. Oz

    Oz Well-Known Member

    Re: Woah, Momma. Cuban nailed for insider trading.

    My first thought when I heard the news. At least it would explain why they said no.
     
    Oz, Nov 17, 2008
    #14
  3. poindexter

    poindexter Well-Known Member

    Re: Woah, Momma. Cuban nailed for insider trading.

    Explain again to me why Cuban is talked about as one of the best owners in all of sports.

    I am not trying to start a Texas deathmatch argument, I am just going thru his resume, I don't quite feel the love.


    *He bought a down and out franchise, and it turned around into a winner. Check - but a lot of owners have done that in all sports

    *He offered thirsty egyptian cotton towels and robes to his players, and personal DVD players to his players. Check

    *He got a new arena built - Check - like about every owner

    *He's won championships - no

    *He has a unique commentary on NBA ref'ing - check

    *He blogs - check


    What am I missing?
     
    poindexter, Nov 17, 2008
    #15
  4. poindexter

    poindexter Well-Known Member

    Re: Woah, Momma. Cuban nailed for insider trading.

    But thank you all for the help. My only question now is, upon hearing this information, say he didn't seek it out but someone phone him up and says this is going down, dump your stock. Is he just supposed to sit on his hands and take the hit?

    Yes.

    It is illegal to buy and sell public stocks based on information not disseminated to the public. Can't get any more simple.
     
    poindexter, Nov 17, 2008
    #16
  5. Mizzougrad96

    Mizzougrad96 Active Member

    Re: Woah, Momma. Cuban nailed for insider trading.

    I would want Cuban as the owner of my favorite team.
     
    Mizzougrad96, Nov 17, 2008
    #17
  6. The Big Ragu

    The Big Ragu Moderator Staff Member

    Re: Woah, Momma. Cuban nailed for insider trading.

    A few things are telling. This wasn't a pump and dump of any sort. They are not going after him criminally, and the SEC loves to make examples of high-profile insider-trading cases. There wouldn't be a reasonable criminal case here because he didn't enrich himself with insider info.

    At the time he sold the Copernic stock, he acknowledged in interviews that day that it was because of the PIPES transaction. So he has pretty much already admitted he knew it was happening before it was formally announced and in his mind he saw nothing wrong with it. Those transactions dilute a stock's value horribly and he didn't want to sit and hold something having value lopped off of it to raise cash. It isn't like he got wealthy off the transaction. He bought the stock after it had announced surprising earnings a few months before, near its high, and he sold it for about the same amount he bought it.

    The thing that made his ability to sell on July 28 (which triggered a lot of other selling when people saw that Mark Cuban was dumping his large stake), unfair compared to a regular investor like you or me, who wouldn't have known about the PIPES transaction until the next day is that as a large shareholder in the company, he was obviously made aware of the financing deal before it was formally announced. It is obviously unfair that he got a leg up on everyone else. But isn't it also unfair to expect someone to hold onto a stock that the company is intentionally diluting in value, when you know what is happening? Cuban wasn't the one manipulating the stock's value.
     
    The Big Ragu, Nov 17, 2008
    #18
  7. Small Town Guy

    Small Town Guy Well-Known Member

    Re: Woah, Momma. Cuban nailed for insider trading.

    When two of your favorite teams are run by Glen Taylor and Carl Pohlad - guys with just as much money as Cuban - you start to appreciate someone like Cuban, someone with at least a shred of passion for his product. It's still annoying watching him jump up and down on the baseline of every Mavs home game like Dancing Barry, but I'm with Mizzou on this one.
     
    Small Town Guy, Nov 17, 2008
    #19
  8. ondeadline

    ondeadline Well-Known Member

    Re: Woah, Momma. Cuban nailed for insider trading.

    Uh, the words "nailed" and "charged" are not interchangeable!
     
    ondeadline, Nov 17, 2008
    #20
  9. Football_Bat

    Football_Bat Well-Known Member

    Re: Woah, Momma. Cuban nailed for insider trading.

    The planning and funding for the AAC pre-dates Cuban. But I'm sure its pending construction played a factor in Cuban's buying the team.
     
    Football_Bat, Nov 17, 2008
    #21
  10. Webster

    Webster Well-Known Member

    Re: Woah, Momma. Cuban nailed for insider trading.

    As Ragu points out, Cuban made the rational move. But it also appears to be textbook illegal.

    I'm wondering how this takes 4 years to get to court.
     
    Webster, Nov 17, 2008
    #22
  11. goalmouth

    goalmouth Well-Known Member

    Re: Woah, Momma. Cuban nailed for insider trading.

    He's the only billionaire I know of who will personally answer e-mail from ordinary schmucks. Game, set, match.
     
    goalmouth, Nov 17, 2008
    #23
  12. luckyducky

    luckyducky Guest

    Re: Woah, Momma. Cuban nailed for insider trading.

    Ditto. If he can find a way to get the Mariners away from Nintendo, there's an MLB franchise he can have a lot of fun with ... and he'd be right across the street from Drew Carey's MLS Sounders and Paul Allen's Seahawks. Sounds like a win-win for Seattle to me.

    Hmm, hey Cuban...!
     
    luckyducky, Nov 17, 2008
    #24
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