sorry wallstreet1231, no dice - merely knowing (or believing) (or hearing of the possibility of or probability of) news of "a material event" or even just a general corporate update that "may" be coming forth cannot not be insider trading UNLESS the follwing criteria are met:
1. The one who found out the release of a material event was to occur and could be PROVEN to have known what that event was to be before the general public -
2. Second, that then the one who knew could be PROVEN TO HAVE TRADED upon or made portfolio decisons BASED UPON knowing such event (think Martha Stewart) -
Emphasis on both of these criteria would have to be PROVABLE beyond a reasonable doubt.
The critical flaw in your argument here that would never hold up is in the end you would have to prove the accused actually received such information directly from an insider (or one related to an insider) and it was disseminated so an accused (or a few select others) could either profit from it or seek relief from loss - in this case we have information being posted on one of the largest chat board companies, read by multi-thousands so hardly a select few others.
in otherwords, if an accused heard a rumor from the mill, or from someone, who "knew someone" per se, that could not qualify since there are rumors going around all the time about any number of things of supposed material company events - some of which turn out to be true and many which don't.
Second to that as I say, you would have to prove someone actually knew of the MATERIAL EVENT before the general public, rather than just someone who heard SOME news was to be released on such in such and such a timframe.
With regards to this specific case. While I don't have it handy, I'm quite sure I read one of the first posts in question and the delineation given was WITHIN A RANGE OF DAYS, not initially any SPECIFIC DAY. Yet as the timeline gets closer to the end of the range, that end then becomes "the day" in the estimation of the inferrer.
It is perfectly LEGAL for any shareholder (or non-shareholder) to call or communicate with their or a public company and seek understanding if any news may be coming out anytime soon. This actually happens quite often in the market - esp otc where companies are small. In that case the IR dept or any company officer is allowed to answer that general question. If the company representative of course answers with specific information ABOUT a material event yet to bre released to one shareholder, well, they have broken the law. There are all kinds of safe harbor words and phrases that can be used - one of which is "anticipates" or another "expects to" - neither of which are guaranteeing any certainties whatsoever. As long as the shareholder leaves with that general information and nothing more, it is up to them and their investing decisons what they would like to do with that information. It is still their risk either way since they do not know exactly what the event is.
So in addition to the first two criteria, you would also then have to prove neither of those safe harbor words or phrases were used (if an accused did indeed speak directly to a company or its representatives). If the accused merely spoke to someone such as a fellow trader/investor, or their associate, they are doing nothing illegal whatsoever - esp if they did not make any trading decisions whatsover subsequent to hearing the rumor.
But generally and to my knowledge by one post I read, what was initally diseminated here on this board was someone several days ahead, heard a PR was "expected to" come out BY a Monday - and that was what they reported they heard and inferred on a PUBLIC CHATBOARD. Another poster even replied they hoped it wasn't on Friday because they felt Monday was a better day for any news to be released no matter what the nes would be. Simple - that was their believe by what they were told and then of one who read it. imo
Not really sure of your agenda here, but to each his or her own. You do know this is OTC right and there are far worse criminal scams going on than someone hearing there might, should, or could be news coming within a timeframe (but not knowing the actual news)??
Well, happy Friday to ya. njoy! lol believe me I have zero idea why I just wasted my time writing this. Do what thou whilst my friend! My last post on the topic.
imo
AI
