Deadly company info (legal) - how to sell it?

This is a discussion on Deadly company info (legal) - how to sell it? within the General Trading Chat forums, part of the Reception category; This is about legally selling information that can affect the value of a stock. 'Public info' that has been overlooked. ...

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Old Jan 8, 2018, 3:01am   #1
 
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Deadly company info (legal) - how to sell it?

This is about legally selling information that can affect the value of a stock.

'Public info' that has been overlooked.

It is interesting because both parties can happily gain, but the deal is obviously difficult to achieve

The value of the info can only be verified by the buyer, when they have it; in which case they already have it.

It's an interesting conundrum.
.

Last edited by Marco_Trader; Jan 8, 2018 at 6:09pm. Reason: Focussing on the question
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Old Jan 8, 2018, 10:37am   #2
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Hi Marco_Trader,
Welcome to T2W.

As debut posts go - yours is an unusual one. I've never been in possession of highly damaging information, let alone tried to sell any. That said, if I was, I imagine that profiting from it would be extremely difficult. The person(s) most likely to pay a high price is the company implicated, so they can either suppress it or try to manage its release. Next up would be the company's largest rival - they may be willing to cough up for some dirt on their competitor. Thereafter, it's only the media who might be willing to pay you - but I imagine the amount you'll get from them will be much less.

Your best bet is to release it to the media for free and to do it in such a way that they can verify your allegations while you remain anonymous. The day before, stick a few £10.00 per point shorts on with a few spread betting companies and cross your fingers. Nothing too big, because if you open an account and your first trade is at £1,000 p/p and the stock price tanks the next day - that will get noticed. If the info' is that bad, you'll have to weigh up the pros and cons: make a little and live, or try and make a lot and risk ending up floating down the Thames.
Tim.
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Old Jan 8, 2018, 11:41am   #3
 
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Tim,
Have you ever thought of taking up film/TV script writing? There's quite a few bob to be earned there when you're not trading
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Old Jan 8, 2018, 3:10pm   #4
 
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"...ending up floating down the Thames."
Or in jail for insider trading !
And if extradited to the US end up in a max security federal pen with a 300 year sentence !
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Old Jan 8, 2018, 4:05pm   #5
 
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Marco_Trader started this thread Or in jail for insider trading !

... only that the scenario states that the information is public.
Therefore it would not be insider trading.

Possibly considered unethical, but that's all.

Surely, any analyst is always working to get such info.
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Old Jan 8, 2018, 9:28pm   #6
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Quote:
Originally Posted by Marco_Trader View Post
Or in jail for insider trading !

... only that the scenario states that the information is public.
Therefore it would not be insider trading.

Possibly considered unethical, but that's all.

Surely, any analyst is always working to get such info.
So have you just got One lot of deadly damaging company information, or will there be One every week?
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Old Jan 8, 2018, 10:23pm   #7
 
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Quote:
Originally Posted by Marco_Trader View Post
This is about legally selling information that can affect the value of a stock.

'Public info' that has been overlooked.

It is interesting because both parties can happily gain, but the deal is obviously difficult to achieve

The value of the info can only be verified by the buyer, when they have it; in which case they already have it.

It's an interesting conundrum.
.
If it is not insider info, but based on public info/ your own research, the best is to short the stock (or but put options and release it trough a PR firm - this is essentially the business model of Citron research and other short sellers and we are yet to see someone floating down river, but I bet this is the wet dream of a lot of CEOs and share holders :-)
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Old Jan 8, 2018, 11:14pm   #8
 
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Marco_Trader started this thread < So have you just got One lot of deadly damaging company information, or will there be One every week? >
----

It was just accidental.
Either way; one each week would be way too much to expect.
Think about pouring over the data, and developing the spreadsheet; and then repeating, but with other calculations.
Then everything must be written up, providing the reader with a quick manual verification with arithmetic and say a web calculator.
Add in the need to create diagrams......

It's a lot of work.
-------

< but I bet this is the wet dream of a lot of CEOs and share holders :-) >
---

You would think so.
But it is not easy to set up.

News distribution is no problem (email).
One doesn't need to be a known person - maths provides the proof.

Ideally one needs to have a close relationship with a wealthy spreadbetter.
Then you could be in the same room, and share the excitement (and the money).

The thing is; the share price can't go up in such a scenario - at least, I can not envisage how traders in the stock could contemplate even a hold.
Therefore, if a zero risk trade ever exists, this must be in that bracket.

So somebody with a big account could do it.

My guess though is that it would be ideal for a propriety trading firm.
They don't answer to anybody, and they could cover all the trading options.

They could turn millions.
But it's finding one, and then doing a deal.

Hmmmmm!

Last edited by Marco_Trader; Jan 8, 2018 at 11:20pm.
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