Posts Tagged ‘Wyly brothers’

Wily Wyly’s

Wily Wyly’s

Courtesy of Cassandra Does Tokyo 

Phineas Taylor Barnum (1810-1891) American showman; co-founder of Barnum and Bailey circus. Edward Linley Sambourne cartoon from Punch London 1884 in the Fancy Portraits series showing Barnum as a wily fox exploiting people's phrenological bump of Credulity. At this time Gall and Spurzheim's idea that physical formation of skull was related to mental capacity, Engraving

I used to smile sophmorically at the sight of a Dentist named Dr Fang, or a Plastic Surgery clinic named Dr Tuck, just as I have long-chuckled at the sight of the The Wyly Brothers moniker in print. Monday morning quarterbacking is always easy, but I can tell you that there was always something fishy about the way their stocks traded (both Sterling Software and Sterling Commerce) – and now, of course, we know why.

Wealthy self-made Texans (however grey their machinations), it seems, are inherently disdainful of regulation and authority, and a sucker for low-hanging fruit irrespective of prevailing law. But rather than being "men" about it (so to speak), and simply taking their operation private at an early stage, or checking out and becoming a citizen of Belize (like Tory Chair Michael Ashcroft or paper-cup scion Kenneth Dart) or creating their own island state with its own zero-tax and regulatory regime (like the Berkley Brothers),  the Wyly’s chose to speaketh in forked tongues, milking the system for its benefits, while systematically gaming it in reasonably cynical fashion. Even sadder, they authored a now-dubious book about their formula success – one which undoubtedly excluded a few ignoble "trucs de chef". The Wyly’s, it would seem, expected nothing more than proverbially "having their cake whilst eating it too" versus paying more than their share of tax, forgoing illegal trading gains, or limiting their presence in their beloved fire-ant state to 180 days per calendar year. 

There are lessons for the contrarian here, and ammunition for those trying to explain the price momentum phenomena: The Wyly brothers were not alone. I do not mean "alone" in the sense of being in the company of Mr Waksal or Mrs Stewart. Rather, I mean that their entourage, like the Remoras (or sucker fish) feeding upon their hosts errr umm crumbs, was omnipresent in riding the coat-tails of each abuse of material non-public information.  Indeed, the daisy-chain is unlikely to have stopped there. Humans DO learn quickly where the fish are hiding, and all manner of observant executing trader, back-office clerk, and/or personal assistant, will surely have suspected  the cause and effect of winning trades. Beyond that, information is power, and is often used to curry favor for those looking to reward or impress.

In short, it is a picture-postcard of inside information…
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SEC Brings GIGANTIC Insider Trading Case Against The Famous Wyly Brothers Of Texas

This post from Business Insider sets the stage for the next post by Cassandra Does Tokyo which discusses insider trading in general. – Ilene 

SEC Brings GIGANTIC Insider Trading Case Against The Famous Wyly Brothers Of Texas

wyly brothers

Image: www.charlesandsamwyly.com

Courtesy of Joe Weisenthal at Business Insider/Clusterstock 

This evening the SEC announced a massive fraud charge against Dallas-based investors The Wyly brothers.

As Paul Murphy at FT Alphaville notes, the charge — which pertains to activity taking place over 13 years, worth $550 million — makes Rajaratnam and Martha Stewart look like small potatoes.

The gist of the allegations: The brothers Wyly (Samuel and Charles J.) used their various board seats and a network of offshore accounts to trade and conceal their holdings.

Here’s the press release:

—--

The Securities and Exchange Commission today charged brothers Samuel E. Wyly and Charles J. Wyly, Jr. of Dallas with violating federal securities laws governing ownership and trading of securities by corporate insiders. The Wyly brothers reaped more than $550 million in undisclosed gains while sitting on corporate boards by trading stock in those public companies through hidden entities located in foreign jurisdictions to conceal their ownership and trading of those securities.

The SEC alleges that the brothers created an elaborate sham system of trusts and subsidiary companies in the Isle of Man and the Cayman Islands to sell more than $750 million worth of stock in four public companies for which they were corporate directors. They also committed an insider trading violation in one of the companies for an unlawful gain of more than $31.7 million.

Along with the Wylys, the SEC charged their attorney Michael C. French of Dallas and their stockbroker Louis J. Schaufele III of Dallas for their roles in the fraudulent scheme. French was on the board of directors at three of the companies.

"The cloak of secrecy has been lifted from the complex web of foreign structures used by the Wylys to evade the securities laws," said Lorin L. Reisner, Deputy Director of the SEC’s Division of Enforcement. "They used these structures to conceal hundreds of millions of dollars of gains in violation of the disclosure requirements for corporate insiders."

According to the SEC’s complaint, filed in U.S. District Court for the Southern District of New York, the public companies…
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ValueWalk

Donald Trump - How the Ghost of Watergate Haunts This Election

By Jacob Wolinsky. Originally published at ValueWalk.

Donald Trump – How the Ghost of Watergate Haunts This Election

There is a line of reasoning in political circles that says Barack Obama created the phenomenon of Donald Trump.

I aver that Donald Trump is a creation of the post-Watergate media. Collectively we have made running for office so abso...



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Zero Hedge

Will Turkey Become An "Islamic State"?

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Emad Mostaque via GovernmentsAndMarkets.com,

“Erdogan once said that democracy, for him, is a bus ride … ‘once I get to my stop, I’m getting off’ ”

Jordan’s King Abdullah recalling a conversation with the Turkish President

Tonight is H?drellez in Turkey, celebrating spring and the day on which the Prophets al-Khidr and Elijah.

Traditionally wishes come true today and it would seem th...



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Phil's Favorites

PhilStockWorld.com Weekly Trading Webinar - 05-04-16

Watch yesterday's stock and option trading webinar below. (Subscribe to PSW's YouTube channel here.)

PhilStockWorld.com Weekly Trading Webinar - 05-04-16

Don't miss next week's webinar in real-time. Get LIVE access to Phil's Weekly Webinars by joining us at Phil's Stock World — click here!)

Major Topics

00:01:51 Checking on the Markets: CL, RUSSEL, INDEX, DX, SI, YG, AAPL, BA, WYNN, AMZN, TSLA, NG, TLT, NASDAQ, NKD
00:06:52 Trade Ideas: RUSSEL, AAPL, NASDAQ
00:18:50 AAPL: Bull calls spread, Long Term Portfolio, Trade Ideas
00:23:50 BHI: Puts and Calls, Trade Ideas
00:26:20 Theory on TWTR and F...



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Chart School

S&P 500 Snapshot: Market Stalls in Advance of Tomorrow's Jobs Report

Courtesy of Doug Short's Advisor Perspectives.

Major markets around the globe saw little price movement today. Our benchmark S&P 500 rallied at the open, despite the biggest jump in new unemployment claims since January of 2015. The index hit its modest 0.44% intraday high about 45 minutes into the session. It then sold off to its -0.26% early afternoon low. The index then struggled to its -0.02% close. The 500 essentially went nowhere in advance of tomorrow employment report for April.

The yield on the 10-year note closed at 1.76%, down three basis points from the previous.

Here is a snapshot of past five sessions in the S&P 500.

Here is a daily chart of the index. Volume in today's decline was unremarkable.

A Perspective on Drawdowns...



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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

The Unloved Business That's Saved Big Oil From Low Energy Prices (Bloomberg)

Big Oil is suddenly Big Chemical.

Oil rallies as Canada fire and Libya violence threaten supply (Reuters)

A huge wildfire near Canada's oil sands region and escalating tensions in Libya stoked concern among investors over a near-term supply shortage, driving crude prices up for the first time in a week on Thursday.

The 9 bes...



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Digital Currencies

"I Can Only Say I'm Sorry" - Self-Professed Bitcoin "Creator" Can't Provide Proof, Backs Out

Courtesy of ZeroHedge. View original post here.

Two years after Newsweek wrote an inaugural article upon returning to print in which it "unmasked" bitcoin creator Satoshi Nakamoto and which turned out be a hoax (the author "found" Nakamoto using a white pages search), earlier this week the world was fixated on the story of another self-professed bitcoin "creator", this time Australian entrepreneuer Craig Wright, who &quo...



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Kimble Charting Solutions

S&P 500- Reversal patterns taking place of late at resistance

Courtesy of Chris Kimble.

How many of you like “Choppy/Sideways” markets? I humbly suspect that most don’t. They do present some short-term trading opportunities for sure, nothing wrong with that. From a trend perspective, I would understand if some think a sideways pattern is boring.

Below takes a close look at the S&P 500 over the past couple of years.

CLICK ON CHART TO ENLARGE

The S&P 500 has spent the last couple of years, forming...



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Biotech

Cantor Says Relypsa's Veltassa Metrics Look Favorable

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

Courtesy of Benzinga.

Relypsa Inc (NASDAQ: RLYP) shares have plummeted 51 percent year-to-date, under pressure from debt-financing related concerns. Cantor Fitzgerald’s Mara Goldstein reiterated a Buy rating for the company, while reducing the price target from $42 to $41. The analyst believes the 1Q16 results would be “a stabilizing force for the shares.”

Positive Data Points For Veltassa Launch

Veltassa metrics look favorable so far, including a low payer rejecti...



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OpTrader

Swing trading portfolio - week of May 2nd, 2016

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Mapping The Market

About that debate last night

Although we try to stay focused on finding and managing promising trade ideas, the comments in the comment section sometimes take a political turn (for access, try PSW — click here!). So today, Jean Luc writes,

The GOP debate last night was just unreal – are these people running to be president of the US or to lead a college fraternity! Comparing tool size? The only guy that looks semi-sane is Kasich. The other guys are just like 3 jackals right now. 

And something else – if Trump is the candidate, that little Romney speech yesterday is probably already being made into a commercial. And all these little snippets from the debate will also make some nice ads! If you are a conservative, you have to be scared now. 

Phil writes back,

I was expecting them to start throwing poop at each other &n...



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News: If you missed it, you can probably find it in our Market News section. We sift through piles of news so you don't have to.   

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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!




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