SEC Investigating "Insider Trading" Of Sirius Stock - Stern?!

[Edgewater_Joe]

This was just released this morning on CBS MARKET WATCH, even though the story first popped up on Murdoch's fish wrap over the weekend:

Report: SEC probes trading in Sirius

By David B. Wilkerson, MarketWatch

SAN FRANCISCO (MarketWatch) -- Securities regulators have begun an investigation into possible insider trading related to radio host Howard Stern's announcement in October that he would jump to Sirius Satellite Radio, according to a published report Saturday.

The Securities and Exchange Commission is looking into the possibility that some investors may have purchased Sirius stock after news was leaked that Stern would be making the Oct. 6 announcement, hoping for a surge in the shares, The New York Post reported.

The day of Stern's announcement, Sirius (SIRI) shares rose 15 percent to close at $3.84.

Chaunce Hayden, a New York gossip columnist who frequently appears on Stern's radio show, has been subpoenaed by the SEC, the Post reported, to answer questions about what he may have heard in Stern's studio.

Stern, angered by fines his show generated from the Federal Communications Commission in its crackdown on indecency, said he would move to Sirius on Jan. 1, 2006, after his contract with Viacom's (VIA) (VIAB) Infinity Broadcasting expires. .

Sirius shares closed at $5.87 on Friday.

Funny, ain't it? Now we have the SEC digging into Stern's new company after Michael Powell essentially kicks him out of the old company?

Like this is the most critical investigation the SEC can be doing, what with all the Merck/Pfizer stuff going on and all ...

[On the Road]

1. This Was Probably a Great Insider Opportunity

Whether anyone broke any laws is another matter.

You cannot use any information you come across in your job to trade company stock. However, if you hear a rumor accidentally and buy based on the rumor, I don't believe that's a crime. There were many rumors swirling around before the announcement that Stern had signed with Sirius, most of them from fans of the show rather than people looking to make a buck in the stock market.

There's insider trading on at least half of all major announcements. You can tell by the trading patterns. A stock often drops before a negative earnings surprise, meaning that people are bailing out based on leaked news.

So singling out Sirius is almost as egregious as singling out Martha Stewart.

[MidwestTransplant]

2. As long as Stern didn't trade on the news he has nothing to worry about

I don't believe he could be in any trouble for telling anybody about the upcoming deal either. If those people traded on the info it would only impact whether they possibly get in trouble.

[still_one]

7. I also believe it has not merit, but

if stern did tell anyone about the upcoming deal, it would be considered insider trading

It didn't happen that way though

[On the Road]

10. Yeah, I Doubt that Howard Made Those Trades

He's too canny to do something that balantantly illegal. But it wouldn't surprise me if someone associated with the show did. A lot of dumb fans who might want to make a killing.

Of course, it's just as likely it was on the Sirius side.

There's also the Martha Stewart possibility: That nobody broke any laws, but if they are questioned and then panic and lie, they can get nailed.

[Renew Deal]

4. So the problem is that Hayden may be paid by Stern?

[Renew Deal]

3. Maybe I'm missing something, but I don't see what's wrong here.

The stock went up after Stern's public announcement. He didn't even tell his staff. The announcement was news to them. I even thought about buying Sirius stock. Sirius is at $5.87 right now.

[On the Road]

13. Normally, a Stock Rising BEFORE the Announcement

is what raises suspicions. In the case of Sirius, that didn't seem to happen. If anything, the stock was flat or a little down.

http://clearstation.etrade.com/cgi-bin/details?Symbol=siri&Refer=http://clearstation.etrade.com/

It's entirely possibly there were good reasons for suspicion (big blocks trading or a whistleblower), but it certainly looks politically motivated.

[Dogmudgeon]

5. What fools!

They should have placed a ton of "put" calls on 9/10/2001. That's the way to do it!

--p!

[still_one]

6. It has no merit

[Inland]

8. "after news was leaked"--gee, sounds like public information

If it is public info, leaked or not, then there shouldn't be a problem in trading on the info.

[satya]

9. SEC/IRS being used to silence dissenters?

Funny how * could find the money to bump up the budget for IRS audits by 7% next year. A caller on AAR said her dad (a member of the peace movement) had his assets frozen, could not even write a check. Eventually the lien was lifted, because it was without merit, but until then he had no access to his finances.

[tom_paine]

12. Sure. That's what Nixon wanted to do. Of course, that was when America

was free, and he couldn't do it.

In Imperial Amerika, I have absolutely no doubt that corrupt Busheviks would be HAPPY to break ANY law for Der Fuhrer, including send some anthrax to his Political Enemeies at a strategic moment.

No doubt whatsoever.

[tom_paine]

11. Sounds like THE PARTY is up to it's old tricks of investigating ONLY

Enemies of the State.

naturally, ANY Insider trading by the Imperial Family or their cronies is motivated out of "patriotism" and therefore needs not be investigated.

:puke: Welcome to Sovietized Amerika. Naturally, we are Sovietized in the "Free Market" way.