If there is one thing that gets me riled up, it is people in the know making easy money unfairly. While I am not a subscriber of grand conspiracies in the markets, I do believe that confidential information often gets leaked early, allowing people to make a quick buck.
The latest one I noticed was STEC. This is a small memory company that announced they are being bought by WDC on Monday. The price was a huge premium, about 75%.
I looked at Fridays trading to see what I could see and there it was, very clear. In the last fifteen minutes, trading volume picked up on STEC and the price went from 3.40 to 3.59. Over a million shares changed hands, which was easily the highest volume since March. So about a seven percent pop at the end of the day, almost assuredly bid up by people in the know. And then those people enjoyed Mondays announcement and saw the price go from 3.59 to 6.72 in a single day.
It is just wrong that they make money like that. I wish I would read about the SEC throwing some of these people in prison.
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