Woah, Momma. Cuban facing insider trading charge.

[sabrefan]

http://online.wSportsJournalists.com/article/SB122693827604333637.html

 

[Matt1735]

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

So much for owning the Cubs...

Maybe he can buy a team in the fed pen league...

There's a good football player in the system already.

 

[Beef03]

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

OK I could wind up sounding like a complete dolt on this, but keep in mind my understanding of the buying and selling stocks ends with the fact you can buy and sell stocks. To this point in my life I have never been able to afford to get involved in the stockmarket in anyway shape or form.
It doesn't say how Cuban came across that information, but obviously he did in one form or another, was he supposed to just sit on it then and take the loss? Also what would constitute illeagle gathering of information?

 

[Paper Dragon]

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

OK I could wind up sounding like a complete dolt on this, but keep in mind my understanding of the buying and selling stocks ends with the fact you can buy and sell stocks. To this point in my life I have never been able to afford to get involved in the stockmarket in anyway shape or form.
It doesn't say how Cuban came across that information, but obviously he did in one form or another, was he supposed to just sit on it then and take the loss? Also what would constitute illeagle gathering of information?

Excluding your spelling of illegal, it's a fair question.

 

[slappy4428]

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

If someone from the company tells him its coming and he might want to get rid of the stock, that would be a bad thing.

 

[Bob Cook]

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

Insider trading is making moves based on information only you have as a company insider. So if, as an outsider, I happened to find out that, say, Biotech Company X was going to fail to get FDA approval on its drug, and sold before the news was announced, that's OK. But I'm a higher-up or someone at Biotech Company X who got the news before it was released to the public and traded on that news, that's illegal. Also, it would be illegal if my source as an outsider was someone within the company, or someone who was in a official position to receive that news before everyone else did. The idea is that for fair and open markets, insiders can't trade ahead of the news they are about to report, news that would affect the stock price.

 

[slappy4428]

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

my version was shorter.

 

[Big Circus]

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

OK I could wind up sounding like a complete dolt on this, but keep in mind my understanding of the buying and selling stocks ends with the fact you can buy and sell stocks. To this point in my life I have never been able to afford to get involved in the stockmarket in anyway shape or form.
It doesn't say how Cuban came across that information, but obviously he did in one form or another, was he supposed to just sit on it then and take the loss? Also what would constitute illeagle gathering of information?

Excluding your spelling of illegal, it's a fair question.

That's the 'murican spelling, commie!

 

[slappy4428]

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

Why do you hate 'Murica, PD?

 

[MU_was_not_so_hard]

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

My guess is that someone leaked this to MLB -- giving them more than enough reason to pretty much put his paperwork on the Cubs in the other file cabinet.

 

[goalmouth]

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

This is a four-year-old civil matter, not criminal, so the worst the feds can do is annoy Cuban with a lawsuit.

Cuban has been outspoken on his blog calling for transparency in the federal bailout plan. Coincidence? I think not.

 

[Tommy_Dreamer]

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

This is a four-year-old civil matter, not criminal, so the worst the feds can do is annoy Cuban with a lawsuit.

Cuban has been outspoken on his blog calling for transparency in the federal bailout plan. Coincidence? I think not.

It's amazing what gets drudged up when someone tries to buy one of the biggest franchises in all of sports. It happens all the time.

Did Cuban break the law? Maybe he did. Does it change my opinions about him as someone that would've been good for the Cubs in the long run, absolutely not. And yes, Cuban is the owner of my fave NBA team.

 

[Beef03]

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

OK I could wind up sounding like a complete dolt on this, but keep in mind my understanding of the buying and selling stocks ends with the fact you can buy and sell stocks. To this point in my life I have never been able to afford to get involved in the stockmarket in anyway shape or form.
It doesn't say how Cuban came across that information, but obviously he did in one form or another, was he supposed to just sit on it then and take the loss? Also what would constitute illeagle gathering of information?

Excluding your spelling of illegal, it's a fair question.

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?

 

[Oz]

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

My guess is that someone leaked this to MLB -- giving them more than enough reason to pretty much put his paperwork on the Cubs in the other file cabinet.

My first thought when I heard the news. At least it would explain why they said no.

 

[poindexter]

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]

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.

 

[Mizzougrad96]

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

I would want Cuban as the owner of my favorite team.

 

[The Big Ragu]

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

OK I could wind up sounding like a complete dolt on this, but keep in mind my understanding of the buying and selling stocks ends with the fact you can buy and sell stocks. To this point in my life I have never been able to afford to get involved in the stockmarket in anyway shape or form.
It doesn't say how Cuban came across that information, but obviously he did in one form or another, was he supposed to just sit on it then and take the loss? Also what would constitute illeagle gathering of information?

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.

 

[Small Town Guy]

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?

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.

 

[ondeadline]

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

Uh, the words "nailed" and "charged" are not interchangeable!