Rochdale said to seek capital lifeline after AAPL trading error

Friday, November 2, 2012 · 3:32 pm · 20 Comments

“Rochdale Securities LLC, the 37-year- old brokerage that employs bank analyst Dick Bove, is seeking a capital injection after a trading error, said three people with knowledge of the firm’s situation,” Hugh Son, Saijel Kishan and Zeke Faux report for Bloomberg.

“Executives at Rochdale are telling employees and potential investors that a trader made an unauthorized purchase of Apple Inc. (AAPL) shares, which has eroded the capital of closely held Rochdale, said one of the people, who requested anonymity because the overtures have been private,” Son, Kishan and Faux report. “Rochdale bought more Apple shares than the brokerage’s management intended around the technology company’s Oct. 25 earnings report, two of the people said.”

Son, Kishan and Faux report, “Rochdale officials told employees that a rogue trader amassed the position, one of the people said.”

Read more in the full article here.

MacDailyNews Take: Nobody ever got fired for buying IBM. 😉

Categories: News

Tags: AAPL, Apple stock, Dick Bove, finance, Rochdale Securities, rogue trader

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20 Comments

breeze

Friday, November 2, 2012 - 3:43 pm · Reply

They should thank the worker for what will shortly prove a bonanza
- Sharon Sharalike
  
  Friday, November 2, 2012 - 5:03 pm · Reply
  
  That position is surely already closed out, or at least reduced to a reasonable size. There’s no way to raise capital without first controlling the risk that caused the problem.
  
  Here at Sharalike Manor we too are feeling the pain. But hanging tough.
  - Bill Snyder
    
    Friday, November 2, 2012 - 5:14 pm · Reply
    
    Sharon,
    This is your old buddy from AOL. Is that you?
jltnol

Friday, November 2, 2012 - 3:45 pm · Reply

Awwwwww… Too Bad.. someone made a big mistake, and now is looking for somebody to bail them out..

All I can say is welcome to the club. Don’t give them a penny!!!!!!!!!
Nerd Beautiful

Friday, November 2, 2012 - 3:50 pm · Reply

Whew, glad I sold this morning. It’s going to get ugly.
- praus
  
  Friday, November 2, 2012 - 5:19 pm · Reply
  
  LOL now is the times to buy not sell lol
- NHL
  
  Friday, November 2, 2012 - 11:24 pm · Reply
  
  So, Nerd B., your motto is,
  “Buy high. Sell low”?
Now, Now...

Friday, November 2, 2012 - 3:54 pm · Reply

Hope so… $579.00.. Apple, wtf?!
- eldernorm
  
  Friday, November 2, 2012 - 7:51 pm · Reply
  
  Hey, its just those crazy anal….ysts… I tried to buy this afternoon, but missed my stock guy. He’s super busy with the shut down of the market. But come monday, I am going all in. I expect it to drop a little more than bounce back pretty big. Especially after christmas.
  
  People may hate Apple, but they know what to buy and when.
Artist

Friday, November 2, 2012 - 3:57 pm · Reply

So if the trade made a fortune, all is good. But if the stock goes down, suddenly he’s a “rogue trader” and they want a do over?
- danilko1
  
  Friday, November 2, 2012 - 4:17 pm · Reply
  
  That’s what it looks like.
  
  It was official, until they lost their shirt. Stupid is, as a stupid does.
Weekend

Friday, November 2, 2012 - 4:20 pm · Reply

He bought more than he was supposed to buy. Seems very simple to me. And yes MDN, he would have been fired had it been IBM too. And the stock did not go up so he’s not a hero. He would have been wrong in that case also but probably wouldn’t have been fired. He is paid to follow orders. Just like anywhere else if you make a huge fuck up you may lose your job. It has nothing to do with AAPL. It was not just an error it was an expensive error for his company. He should lose his job. Let’s face it, AAPL sits at $576 today in after hours trading. He hardly looks like a genius or an exemplary employee! Even if he bought today he may still look like a dumb shit as Apple shares may continue to drop like a rock. But I took a chance. I picked up a few February calls at closing. Let’s hope that I end up looking better than him. Oh well, at least it’s my money not someone else’s. As for his fate? Oops! See ya! Hey all you fanboys, get out of your mothers basement and go out there and buy a bunch of Apple stuff! Show your love. Help the economy.
- ecrabb
  
  Friday, November 2, 2012 - 5:00 pm · Reply
  
  Just took delivery of my iPad mini this morning, and will replace my iPhone next month for my Christmas present to myself. I’m also holding my shares. This will pass.
  - Weekend
    
    Friday, November 2, 2012 - 5:28 pm · Reply
    
    I’m pondering a mini purchase myself. I have had my 4S for a little over a year. I’m not really that motivated to pay up for the 5. As for your shares, you really don’t have much choice. Too bad you didn’t take profit when it was peaking in September. Look at the gain you would have at this point. You’d be up $125 per share today. Maybe more next week? Have a lot of shares? That’s a lot of money! Remember you’re investing to make money not to lose money. Buy-and-hold is not the best strategy. Occasionally you have to cash in your chips when you’re just doing too good to be true. And you had to know that was when it hit $700. Next time try taking profit. Then when it drops like a rock you won’t have to say “I am also holding my shares this will pass”. It’s a long climb back to $700. And that’s a lot of profit to leave on the table. Enjoy your mini. Enjoy your new 5S. Good luck in your investing.
    - ecrabb
      
      Monday, November 5, 2012 - 12:10 am · Reply
      
      If only I’d had a crystal ball to know the stock would be under $600… Then I certainly would have sold at $700, and I’d be buying back in now. Did I miss out on some profit? I sure did, but I don’t have a crystal ball to know when to buy and sell… Do you?
- NHL
  
  Saturday, November 3, 2012 - 12:04 am · Reply
  
  Weekend, I’ve just gone through your stock market comments and you’re business advice here.
  Very interesting.
  
  You’re either an 11 year old boy, or you think you’re being funny, but you’re actually just talking silly. There’s a difference.
  
  You said:
  “Remember you’re investing to make money not to lose money. Buy-and-hold is not the best strategy.”
  – Actually, Weekend, with Apple, buy-and-hold is a great strategy. Apple’s a huge company already, and it is poised to inherit a vast computer market that could multiply Apple’s size by 90 times more. Even discounting Apple’s vast cash horde, Apple will weather these storms easily, and grow, grow, grow in the near and far future.
  
  You said,
  “Norm, even Apple can’t zoom that quickly.”
  – Interesting, Weekend. Apple already did just that.
  What’s the best predictor of future behaviour? Past behaviour.
  
  You said,
  “They cannot meet demand of new products they are making. There is a tremendous demand for the iPhone five and the iPad mini will probably have a good demand also. But they released these products without a good supply. That’s not good business.”
  How do you know Apple released these products without a “good supply” and still demand is outstripping supply?
  You think a company selling products with higher demand than ability to produce is “not good business”?
  Please, Weekend, tell me what you think is “good business”, and I’ll know to do the opposite, thank you.
  
  You said,
  “If they were able to meet iPhone five and iPad mini demand, the stock would have never taken this huge drop”
  So you think that if Apple’s products were NOT in high demand and flying off the shelves, some spooked investors would NOT be selling Apple?
  Do up your zipper. Your silliness is showing.
  
  You said,
  “I’m pondering a mini purchase myself. I have had my 4S for a little over a year.”
  “But I took a chance. I picked up a few February calls at closing.”
  “Hey all you fanboys, get out of your mothers basement”
  – Weekend, you don’t own a 4S any more than you’re pondering a Mini purchase. And you certainly did not pick up “a few February calls at closing.”
  Your disdain for Apple and Apple customers oozes from your ill-informed business commentary.
  You’re likely a rabid Fandroid, and from your childish comments, it’s quite obvious that you’re the one in his mother’s basement.
  And by the way, I can hear your mommy calling you. Your grilled cheese is ready. She cut it diagonally because she knows you like it better in “sailboat” shapes.
  But come on, it’s past your bedtime.
  - GM
    
    Sunday, November 4, 2012 - 1:44 pm · Reply
    
    I don’t have time to reply to everything. So I’ll just pick the first most obvious error, past performance. Even an 11-year-old knows that you do not base future performance on past performance. Damn! And you went to all that trouble to vent. Idiot.
    - Mr. Potter
      
      Sunday, November 4, 2012 - 11:31 pm · Reply
      
      “Even an 11-year-old knows that you do not base future performance on past performance”
      
      Exactly right! And we know this is true because we’ve seen it many times before….wait, what?
eldernorm

Friday, November 2, 2012 - 7:42 pm · Reply

@ Weekend,
“It’s a long climb back to $700. And that’s a lot of profit to leave on the table. Enjoy your mini. Enjoy your new 5S. Good luck in your investing. ”

Yeah but just look at Apple’s track record. Another quick zoom and they pass 700. Besides, its not the stock price that tells us how Apple is doing. We can see that ourselves. The Stock price is just something to make money on.
Just a thought.
- Weekend
  
  Friday, November 2, 2012 - 10:00 pm · Reply
  
  Norm, even Apple can’t zoom that quickly. And you are correct we can see how Apple is doing. They cannot meet demand of new products they are making. There is a tremendous demand for the iPhone five and the iPad mini will probably have a good demand also. But they released these products without a good supply. That’s not good business. That’s just a fact. It’s not intentional on their part but the results are the same. Thus the drop in the stock price. If they were able to meet iPhone five and iPad mini demand, the stock would have never taken this huge drop. And you’re correct about the stock too. It’s something to make money on. Of course it is, what else would it be? I’m not in love with Apple the company anymore than I’m in love with Ford the company. Why would I be? That’s for fanboys who have no life. Again yes, the stock is a way to make money. Money I’m afraid is a necessary part of life. At least for most of us.