“Apple’s (AAPL) shares moved sharply from the red to the green Tuesday afternoon. There are a couple theories why, but the leading contender is the rumor on Twitter posted just before the stock popped by Douglas Kass, president of the Seabreeze Partners hedge fund, frequent contributor to The Street and regular guest on CNBC,” Philip Elmer-DeWitt reports for Fortune.
“We’ve been hearing quite a lot from Kass since The Street published his The Bear Case for Apple on Sept. 24, 2012, the first trading day after Apple hit its all-time high of $705.06. It would be a mistake to credit him with the subsequent five-month, 38% drop in Apple’s share price that lopped $250 billion off the company’s market value,” P.E.D. reports. “But it’s hard not to pin Tuesday’s action on Kass’ Twitter posts or to see how he profited from them. The stock was down. He tweeted the split rumor. The stock went up. He sold shares while tweeting that his rumor was baseless.”
P.E.D. reports, “For the record, the purposeful spreading of false information in connection with the purchase or sale of securities violates several sections of the Securities and Exchange Act. That ‘purposeful’ bit is the loophole. The trick, should the SEC choose to look into the incident, would be to prove that Kass knew the rumor was false when he posted it.”
Read more in the full article here.
MacDailyNews Take: Regardless of whether the SEC wakes up from this latest poke in the eye and decides to at least make Kass’ life as miserable as it appears to be, one thing that definitely should happen is that scumbag Dougie’s future pronouncements be treated as the baseless garbage that they so obviously are.
Once your credibility’s gone, slime bucket, it’s gone forever.
If you would like to lodge a complaint about fraud or wrongdoing involving potential violations of U.S. securities laws, you can do so online with the U.S Securities and Exchange Commission here.
Rotten rumors of impossible Apple stock split helps fund manager Kass clear profits – February 26, 2013
Apple stock split rumor pushes shares higher – February 26, 2013
Doug Kass: Apple to announce stock split on Wednesday – February 26, 2013