afr article on insider trading, page-15

Alan Partridge...

The biggest problem is that the threads are in fact full of insiders...be they patsies spreading "planted" info relatively innocently without realising the implications, or be they the more sinister types acting to an entirely different agenda.

I have long held the view the market is awash with such activity...and as Hotcopper is merely a cross section of the market, it makes sense we will see it here.

It amazes me virtually every small cap explorer...and I mean something like 90%... all run prior to news and at the very least, see volume spikes.

Now, whilst some of these can be explained via genuine "pre-empting" from informed market participants, especially when such announcements, or the conditions for such announcements are flagged by the company prior...but in the vast majority of cases, this is not the case.

The biggest problem...I assume...is that an under-funded watchdog simply hasn't the resources, hasn't the teeth, to do actully act on it.

How hard is it to simply identify the large volume buyers immediately prior to an announcment, then simply track them back to the company?

The "problem" exists because we have an environment that does not prevent it...or at least, does not act on those in the thick of it!

But really, insider dealings are just the tip of the iceburg...by far the worst aspect is the blatant manipulation of stocks via "group" effort...or the calssic case of such activity around placement time.

I suggest EGO might be a case in point?

Often times, such "stings" have nothing to do with insiders at all...or the company...and everything to do with the actions of just a few "players" working the stock to their own ends.

I suspect one could write a paper on the various ways placement recipients could work the market to their ends.

Until all this sort of activity stops...until we really do have a level laying field...life on the markets and indeed on sites like HC, will be awash with those with alterior motive and agenda to push!

Imagine trading in an environment where everyone really did have the same information at hand?

lol...is it possible?

Cheers!