just a couple of examples...
TASR and NFI
TASR - CBS drops a hint at an news story for their evening news. Story turns out to be a rehash of a story done three months before. Stock dropped ~15% on the day. Triple the volume of the previous day. From what I could see was happening as the shorts began covering at the end of the day and into the next I'd say they made about 200 million over a week long period.
BTW, I held a few puts at the time and actually made money in this one.
NFI - WSJ prints a "major" investigative piece on this stock last April. Week before the article comes out stock trades at $70. Closes the day of the article at $35. Bottoms at $29, one of the first Plaintiff's suing for the alleged missinfomation by compnay and offices (as alleged by WSJ) turned out to be one of the offshore hedge funds with a large short position. It was common knowledge the shorts were working NFI hard, several Short pundits were assailing it (and still are). With shares currently around $40 the company has a market cap of a bit over 1 billion. Roughly a billion dollars in market cap "disappeared" in the wake of the WSJ article.
I do not nor did not hold a position of any kind in NFI.
Admitedly I have no proof of illegal activity, but with that kind of money floating around and there are some "quirky" goings on with both of these examples... it does give one pause.
If you were unscrupulous... had billions of dollars to play with... had a loophole where no one was really paying attention... and could make billions for doing it... and risk little chance of being "caught"...
what's to stop you?
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