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         Daily Blog - Tiger Software

                            August 3, 2007               

               "The Shame of Insider Selling"  
          Rampant Insider-Inspired Selling
                        before Big Declines:

                       AHM Files for Bankruptcy  

               Insider Selling before A Big Decline
               in RYL has already brought one
               guilty plea to insider trading. 

              "Donald, You're Fired!"   Insider Trading
              at TRMP - Trump Casinos


     William Schmidt,     - Tiger Software's Creator
      (C) 2007 William Schmidt, Ph. D.  - All Rights Reserved. 

      No reproductions of this blog or quoting from it
      without explicit written consent by its author is permitted.

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        Insider Selling before A Big Decline

           Recent Examples of Insider Inspired Big Money Selling, from a TigerSoft perspective.
    
   AHM   CC  COLY CTX  HOV  IDIX   JRC  JRT   LEND MTH  PHM  RDN  RMBS  RYL  TRMP  WMG
     .Many more will be added.  If you owned these shares, have your lawyer contact us. 858-273-5900/
      We now offer expert witness services.  TigerSoft can show you whether your stocks are under heavy
      insider-informed selling. 


                  There are many, many cases.  RYL has a history of insider trading ahead of bad news.
              Note the very red reading from our Accumulation Index.  This shows big-money distribution.  
              Insiders are alledged to have informed the sellers of the troubles to come.

                 Insider trading in the narrowest, legal sense usually refers to what the company's directors
              and bosses are required to register.  But, the reality is that there are many insider-informed
              indivudals and funds that get to act on non-public information.  They learn that earnings will be
              declining months, very often, before the news actually comes out.  As Tiger users, we see this
              technically in the way the stock fails to go up in a rising market, shows steady and heavy red
              distributioon from our Tiger Accumulation Index (S12), forms top patterns (like head and shoulders
              tops), breaks support (S10) and then falls sharply as the bad news comes out.  See our book
              on Short Selling.

               AHM - American Home Financial is a stock to study. It just filed for bankruptcy.  See the
               red down days on its chart below This represents big-money dumping.  They got wind from insiders
               how bad thngs were with the company.  This was a very bullish market environment.   But they
               could not sell fast enough.  They dumped shares and then sold some more.

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                 We will start posting the charts of those companies that show such a pattern.  See the details
             of what we look for in the cases of RDN and LEND.  

                         "The Shame of Insider Selling"
                     Rampant Insider-Inspired Selling before a Big Decline:
                CC  COLY CTX  HOV  IDIX   JRC  JRT   LEND MTH  PHM  RDN  RMBS  TRMP (see below)
                WMG  Many more will be added.

                   wpe3.jpg (2978 bytes)               wpe2.jpg (2735 bytes)                  wpe4.jpg (2697 bytes)      

                                     "Donald, You're Fired"              
               TRMP.GIF (31264 bytes)

              
               .Many more will be added.  If you owned these shares, have your lawyer contact us. 858-273-5900
                TigerSoft can show you whether your stocks are under heavy insider-informed selling. 

                                           Insider Trading Is Rampant                            
                        Here are comments by David Weidner, MarketWatch, Apr 5, 2007
               "The share price of the regional bank at one point topped $66, more than $5 above its already record high.
                By the end of the day shares were up 7.4% to an adjusted close of $65.96. Compass CBSS
                volume of 3.9 million shares - eight times its recent daily volume.  Wire reports in the U.S. said money managers
                and traders were "hearing" that the company was about to be sold. Sure enough, the next day Compass
                announced it accepted a $9.6 billion buyout from Spain's Banco Bilbao Vizcaya Argentaria.
                The trading at Compass in mid February underscores an obvious truth on Wall Street. In the world
                 of mergers and acquisitions there are two kinds of people: Those who know and us.

                "The effectiveness of such measures is on par with our ability to keep investors from hedge funds,
                 John Thain from buying a stock market, Goldman Sachs out of a deal or putting Frank Quattrone
                 in jail. Insider trading is rampant on Wall Street -- either rampant or some people have an odds-defying
                 ability to guess when hidden deal talks will come to fruition.

                 "Christopher Cox now has an opportunity to silence some of the commission's critics and come down
                  hard on a practice that deserves the investing public's outrage. Last week the Securities and Exchange
                  Commission chairman told a congressional committee that such trading was an emerging threat to the
                  capital markets. He's wrong. It's more than a threat. It happens, deal after deal...

                 "Insider trades come in all forms. Former Quest Communications International Inc. Chief Executive
                  Joseph Nacchio is accused in federal court of using a pre-determined stock sale plan to forward an
                  insider-trading agenda. These seemingly immune-to- influence pre-determined plans have one catch:
                  executives have a say in how they are created.
   (Source: http://www.marketwatch.com/news/story/sec-must-crackdown-insider-trading/story.aspx?guid=%7BC001EE44-7C0C-4FC4-8B19-3F4FF618E223%7D )
                 
                      Spikes of Suspicious Volume Appear in 41% of Cases of Buy Outs
   (Source: http://www.professorbainbridge.com/2006/09/insider_trading_1.html      )        

    Brookings Institute looks at "Enronitis"
                   http://www.brookings.edu/printme.wbs?page=/comm/policybriefs/pb118.htm

Insider trading charges haunt Ryland

    wpe1.jpg (65428 bytes)     Tiger users spotted the bearish top in January and
     the stock break below the blue 50-day mvg.avg., despite a bullish overall
    market environment.  Very negative readings from the Tiger Accumulation
    Index rhis year showed Big Money getting out of the stock on every rally.

       Insiders Always Know First!
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Los Angeles Business Journal,  March 7, 2005  by Andy Fixmer,  Kate Berry

A series of insider stock sales that preceded an unexpected decline in new home orders at Ryland Group Inc. have led to a thicket of legal problems for the Los Angeles-based homebuilder and its executives.

Last week, a Ryland division president in Dallas, John Hutchinson, agreed to settle insider trading charges brought by the Securities and Exchange Commission, after he sold shares in January 2004--just days before Ryland announced a sharp decline in new home orders, with the biggest drop in Texas.

The SEC accused Hutchinson of using non-public information to avoid a $100,000 loss when the shares subsequently dropped 12.2 percent. In the settlement, Hutchinson agreed to pay $205,000 without admitting or denying guilt.

The same unexpected decline in new home orders is at the root of an ongoing shareholder lawsuit.

The suit, filed in U.S. District Court in Dallas, alleges that Ryland Chairman and Chief Executive Chad Dreier and Chief Financial Officer Gordon Milne, along with five senior vice presidents and one director, were aware that order figures from Texas were being overstated because cancellations weren't being processed.

                              Want to do more research?

  Insider informed selling is rampant.  Here is a blog devoted to such cases.
         http://lawprofessors.typepad.com/whitecollarcrime_blog/insider_trading/index.html
 

                       

                    

 
 
 
 
 
 
 
 



      
  
            

 

               

 

 


   





  
   



 
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