PEB - Pacific Edge Ltd

[Balance]

Its a hard game we are playing here trying to figure out long range what a company is doing. The only things we can rely on are the HY and FY results and any other information they are obliged to reveal by announcements to the market. Any pleas for updates, hows it going, additional info will be largely ignored as it appears all of that will be via Edison when they get a round tooit. So its wait and stew, wait and stew for a few months yet.

That's not true actually.

It may be a hard game for those who rely purely on information from the company, in which case, you are at a huge strategic disadvantage against others in the market who have access to other sources of information.

Analysts in the market (be them with broking houses or fund managers) get access to a whole range of information to monitor an industry and a stock proactively.

This include analysts' visits to a company, meeting with management, competitors, suppliers, customers etc etc.

That's how fund managers like Milford accumulate big stakes in DIL, BFW etc at rock bottom prices before the rest of the market woke up to what's happening.

[Minerbarejet]

Gee, Balance, if I didnt know you any better I'd say you were talking about insider information.
I will stay out of that if you dont mind.

[Balance]

Gee, Balance, if I didnt know you any better I'd say you were talking about insider information.
I will stay out of that if you dont mind.

Welcome to the real world of brokers and fund managers.

PS. When a broker gets done for insider trading for doing an earnings upgrade or downgrade after visiting a company, please let us know.

[Minerbarejet]

Welcome to the real world of brokers and fund managers.

PS. When a broker gets done for insider trading for doing an earnings upgrade or downgrade after visiting a company, please let us know.

That would depend on what takes place between the visit and the up/downgrade being made public over in their universe
And anyway I said information not trading. Gosh, who would have thought anyone would do such a thing. Tsk Tsk

[Balance]

That would depend on what takes place between the visit and the up/downgrade being made public over in their universe
And anyway I said information not trading. Gosh, who would have thought anyone would do such a thing. Tsk Tsk

Insider information leads to insider trading charges.

When an investor get done for using information he obtains via contacts external to a company, please let us know too.

[skid]

That would depend on what takes place between the visit and the up/downgrade being made public over in their universe
And anyway I said information not trading. Gosh, who would have thought anyone would do such a thing. Tsk Tsk

Heres the scenario--You either think some institutions have access to information that can give them an advantage or you dont--keep in mind there is a whole range of information ranging from having better access to things that simply help with research, to outright illegal behind the scenes tips--I personally am under no illusions that all happen. The world of high finance and even institutions is not big on morality in many cases.---just dont get caught.

I think most have noticed the sign that someone is in the know when the SP has a ''flurry'' sometimes before the actual event.

When your in the club-things can happen.
Sitting around at lunch with you CEO mates--one says ''I cant get into details (ofcourse) but Im in a very very good mood today''

*** Edit--Balance sqeaked in before me on this one--Looks like we were giving examplkes of both sides of the coin

[Balance]

Heres the scenario--You either think some institutions have access to information that can give them an advantage or you dont--keep in mind there is a whole range of information ranging from having better access to things that simply help with research, to outright illegal behind the scenes tips--I personally am under no illusions that all happen. The world of high finance and even institutions is not big on morality in many cases.---just dont get caught.

I think most have noticed the sign that someone is in the know when the SP has a ''flurry'' sometimes before the actual event.

When your in the club-things can happen.
Sitting around at lunch with you CEO mates--one says ''I cant get into details (ofcourse) but Im in a very very good mood today''

Exactly, skid.

But let's use a few real life examples :

Example 1 : an investor hears from one of his customers that xyz company is not paying its bills and is asking for extended credit. He bails out of the shares and a week later, xyz co goes belly up. Is that insider information and insider trading?

Example 2 : an investor went to an IPO presentation and learns that the IPO company is going to launch a new product which will sell for 1/3rd of xyz's product and is just as good, if not better. He bails out of his xyz shares and a month later, xyz shares drop by 75%. Is that insider information and insider trading?

Example 3 : an investor visits xyz company's warehouse while collecting some goods and the manager tells him that 'business is really slow' and 'the company is having to lay a lot of staff off'. Investor sold out of xzy shares and a month later, the company announced an earnings downgrade. The sp drops by 50%. Insider information?

[Minerbarejet]

Like I said Ill just stay out of it.

[Balance]

Like I said Ill just stay out of it.

You are well advised to do so.

[blackcap]

Exactly, skid.

But let's use a few real life examples :

Example 1 : an investor hears from one of his customers that xyz company is not paying its bills and is asking for extended credit. He bails out of the shares and a week later, xyz co goes belly up. Is that insider information and insider trading?

Example 2 : an investor went to an IPO presentation and learns that the IPO company is going to launch a new product which will sell for 1/3rd of xyz's product and is just as good, if not better. He bails out of his xyz shares and a month later, xyz shares drop by 75%. Is that insider information and insider trading?

Example 3 : an investor visits xyz company's warehouse while collecting some goods and the manager tells him that 'business is really slow' and 'the company is having to lay a lot of staff off'. Investor sold out of xzy shares and a month later, the company announced an earnings downgrade. The sp drops by 50%. Insider information?

I would venture to say that not one of your examples is a form of insider information or trading.