Still think TITNC3: Return of the Iceberg was peak

kairo · May 25, 2022

lol spy with the rocket boosters. What did you say jpow

jandrews · May 25, 2022

kairo[OP] said: ↑

lol spy with the rocket boosters. What did you say jpow
Click to expand...

Market likes this particular batch of FedNewz.

kairo · May 25, 2022

jandrews said: ↑

Market likes this particular batch of FedNewz.
Click to expand...

This happened last time and then they suddenly "reinterpreted" it the following day and it crashed lol

clown circus

MickDog13 · May 25, 2022

TreeFortRichard said: ↑

Looks like your $ASO is getting a $DKS bump...
Click to expand...

Oooof thought that was supposed to be a solid $100 stock?

eta: while we’re on that subject go f yourself as well PLTR.

jandrews · May 25, 2022

kairo[OP] said: ↑

This happened last time and then they suddenly "reinterpreted" it the following day and it crashed lol

clown circus
Click to expand...

The financial media is good comedy.

We're gonna attribute the results of today's algorithm fights to...Fed Minutes...sure!

Iwilltaco · May 25, 2022

Iwilltaco said: ↑

Yea, if I sold those at 110% and now it’s 210%, how dumb am I? Hypothetically
Click to expand...

Definitely dumb

theesotericone · May 25, 2022

TreeFortRichard said: ↑

$GME Borrow rate...very very high..
Higher than when it established the plateau

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That's not high. Go look at BBIG borrow rate. That's fucking high. lol

jandrews · May 25, 2022

Iwilltaco said: ↑

Definitely dumb
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Hey, at least you're not sittin in mattress cash at 9% inflation

98tacoma27 · May 25, 2022

theesotericone said: ↑

That's not high. Go look at BBIG borrow rate. That's fucking high. lol
Click to expand...

And yet none of it matters.

TreeFortRichard · May 25, 2022

Annnnnd Queue $NVDA crash

TreeFortRichard · May 25, 2022

TreeFortRichard said: ↑

I quote myself...

also as a holder of a $VET/$GME heavy portfolio...nice day.
Click to expand...

Quoting myself quoting myself...

HEADLINE>.
W0rThL3sz St0|( up 30%
Nice number today...

@kairo has an embarrassing # today I bet
I had a panic for a sec because there was a delay populating the @...Thought he was on punishment. Whew....

jandrews · May 25, 2022

Nice bump on the S+P today. Too bad @kairo missed it

kairo · May 25, 2022

TreeFortRichard said: ↑

Quoting myself quoting myself...

HEADLINE>.
W0rThL3sz St0|( up 30%
Nice number today...

@kairo has an embarrassing # today I bet
I had a panic for a sec because there was a delay populating the @...Thought he was on punishment. Whew....
Click to expand...

I've certainly had worse days lol.

I'm still net green as long as we're above about $95

TreeFortRichard · May 25, 2022

MickDog13 said: ↑

Wtf blacksky?

you couldn’t do this last week before my 38 options expired worthless?

you motherfu…
Click to expand...

Forgot to consult the # of shares purchased by your local member of the Defense committee...

TreeFortRichard · May 25, 2022

Musk wants moAhr $TWTR

up 5% ah

TreeFortRichard · May 25, 2022

Hmmmmm....
How Can we do our $GME game?

BofA and Citi suspend equity trading with Segantii Capital on block trade concerns
Arash Massoudi, Tabby Kinder
4-5 minutes
Hedge fund run by Blackpool FC owner is a ‘priority customer’ in Asia

Hong Kong-based Segantii Capital Management is run by Blackpool Football Club owner Simon Sadler, pictured © PA
Receive free Hedge funds updates

We’ll send you a myFT Daily Digest email rounding up the latest Hedge funds news every morning.

Bank of America and Citigroup have suspended all equity trading with Segantii Capital Management, due to the banks’ concerns about the hedge fund’s bets on the sale of large blocks of shares, according to several people with knowledge of the matter.

The two banks have informed Hong Kong-based Segantii, run by Blackpool Football Club owner Simon Sadler, it had been cut off from trading equities and various other financial instruments, according to the people.

BofA has stopped trading with Segantii in all financial instruments, while Citigroup has suspended its equity trading relationship with the fund but has continued to trade with it in other products such as derivatives.

The news of the moves by the banks to reduce their exposure to Segantii — one of the most active hedge funds in equity markets in Hong Kong — comes as US authorities have launched an investigation into block trading at several Wall Street financial institutions.

Segantii is typically one of the first points of call when bankers are seeking to trade large blocks of shares in Asia, according to several bankers and traders.

The fund has not been accused of any wrongdoing and it is not known whether Segantii has been contacted by US authorities in relation to any of its trades. Media reports earlier this year said US authorities had sought communications between Morgan Stanley, which is at the centre of the block trading probe, and a former employee of Segantii.

Segantii did not respond to requests for comment.

The fund was launched in 2007 by Sadler, who has grown it into a global powerhouse with offices in Hong Kong, New York and London. It had $6.1bn in assets under management as of October last year, according to HSBC. In 2019, Sadler, who lives in Hong Kong, purchased Blackpool FC, the club of his hometown, after it went into an insolvency process.

Segantii is “everyone’s first call on pricing risk, they’re a big liquidity provider in Hong Kong, they’re in every deal”, said a portfolio manager at a global asset manager.

A prime broker at a European bank in Hong Kong called Segantii a “priority customer for the entire Street” in Asia.

One of the people close to the matter said BofA’s market supervision team in the US issued a global directive to “cut off” Segantii in early 2021, in relation to trading by the fund around blocks of shares that had been placed on public markets by other banks. The decision was taken before the scrutiny of Wall Street’s block trading business made headlines earlier this year.

Citigroup “stepped away” from Segantii more recently, according to a second person with knowledge of the matter. “When the headlines [concerning the probe into block trading by some Wall Street institutions] started they said ‘risk off’,” the person said, referring to the process by which a bank reduces its exposure to a client.

A number of other large banks including Goldman Sachs are still trading with Segantii, according to a person familiar with the matter.

Bank of America, Citi and Goldman Sachs all declined to comment.

Additional reporting by Ortenca Aliaj
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TreeFortRichard · May 25, 2022

TreeFortRichard said: ↑

Hmmmmm....
How Can we do our $GME game?
Click to expand...

This goes back to the SEC investigating tip offs of Large block sales..

TreeFortRichard said: ↑

Maybe a rip off article...or a repost? found this for reading without an account

shareandstocks.com

Big Stock Sales Are Supposed to Be Secret. The Numbers Indicate They Aren’t.

9-11 minutes

For years, something strange kept happening on Wall Street.

Before a big shareholder could carry out plans to sell a slug of stock, the price dropped. It was as if other investors knew what was coming.

…

For years, something strange kept happening on Wall Street.

Before a big shareholder could carry out plans to sell a slug of stock, the price dropped. It was as if other investors knew what was coming.

It happened when Bain Capital sold shares of
Canada Goose Holdings Inc.,
the maker of trendy parkas; when 3G Capital sold stock in
Kraft Heinz Co.
; when
Apollo Global Management Inc.
sold shares of
Norwegian Cruise Line Holdings Ltd.
; and when Alaska’s state oil fund trimmed its stake in an artificial-intelligence software firm.

These transactions, known as block trades, are supposed to be a secret between the selling shareholders and the investment banks they hire to execute the trades. But a Wall Street Journal analysis of nearly 400 such trades over three years indicates that information about the sales routinely leaks out ahead of time—a potentially illegal practice that costs those sellers millions of dollars and benefits banks and their hedge-fund clients.

The Journal’s analysis, covering 393 block trades between 2018 and 2021, found that 58% of the time, the share price declined in the trading session immediately beforehand, controlling for the performance of peer companies. Of the 268 trades for which the Journal was able to determine how much the banks paid, the sellers would have received $382 million more if the stocks had performed in line with the benchmark, or about $1.4 million per trade.

A handful might be explained by a negative headline or chalked up to bad luck. But the persistent pattern of stocks falling in the run-up to big insider sales suggests a more widespread problem: Information that should be confidential is getting out.

That pattern is now at the heart of a federal investigation into whether banks tip off favored clients to coming block trades. The Securities and Exchange Commission has sought trading records and electronic communications from a number of big banks and hedge funds, and the U.S. Justice Department is running its own probe, the Journal first reported in February.

The investigation for now appears to be focused on
Morgan Stanley,
the dominant bank in block trading in recent years. The firm disclosed later in February that it had been responding to information requests from the Justice Department since the summer. In November, it put one of its senior executives in charge of block trading, Pawan Passi, on leave. A Morgan Stanley spokeswoman declined to comment on Mr. Passi’s behalf and repeated attempts to reach him have been unsuccessful.

Goldman Sachs Group Inc.

has also received requests from regulators, the Journal reported.

The investigation, along with a broader market decline, has chilled the big business of block trading in recent months, bankers and investors said.

The Journal’s analysis found that when Morgan Stanley executed a block trade by itself, the median stock trailed its peers by 0.7 percentage point in the trading session leading up to the deal, meaning half performed worse than that. That was the worst record of any of the biggest banks that are major players in block trading. The median of
Credit Suisse Group AG’s
deals was underperformance of 0.4 percentage point, the analysis found. The median trades executed by Goldman and
Barclays
PLC roughly matched the market.

Across all banks, the median stock lagged by 0.2 percentage point.

Morgan Stanley, Credit Suisse, Goldman and Barclays declined to comment. The other companies and investors mentioned in this article either declined to comment or didn’t respond.

Leaks could come from a number of sources. Companies tend to approach multiple banks to bid on block deals, leaving open the possibility that someone other than the winner of the business has leaked the information.

There isn’t a comprehensive public list of block trades. Some are registered with the SEC. Others can be gleaned from more obscure corporate filings. Many leave no trace at all. The Journal’s analysis drew from databases maintained by research firms IPO Boutique and Dealogic as well as information from market participants, and matched details of those trades to securities filings where possible, but the list likely isn’t exhaustive.

Insiders who want to sell a slug of stock have a problem: Posting the order to a public exchange would likely tank the price. So they turn to Wall Street.

An investment bank agrees, generally around midday, to quietly buy the shares at a discount to the market’s closing price later that day. The bank then aims to flip the stock to its trading clients at a higher price and pocket the difference. It is a clubby world: Four or five banks do the vast majority of trades, and the same roster of hedge funds line up to buy the shares, according to the data and market participants.

Wall Street thrives on information edges, and at the beginning of a block deal, the bankers are holding a valuable nugget: They know that a wave of selling is likely on the way. That is because public shareholders, assuming that corporate insiders are better informed, tend to copy their trades. A flood of shares for sale also knocks the supply-demand balance out of kilter.

Regulators suspect that investment banks have been tipping off their top clients, who jump in and sell ahead of that wave, according to people familiar with the probes. In many deals examined by the Journal, the stock-price slide began in late morning or early afternoon, around the time sellers typically alert bankers to their plans.

The ultimate losers in these situations are often pension funds, endowments and foundations. They invest with private-equity firms, which use block trades to unwind stakes in newly public companies.

Bain Capital, which lost out on $33 million after Canada Goose’s stock fell in the final hours of trading before it sold a slug of stock, counts Indiana teachers and Los Angeles city workers among its investors, according to public records. Pension funds are also big investors in Boston-based T.H. Lee Partners, which missed out on at least $31 million of proceeds on five block trades between 2018 and 2021 due to unexplained price declines, trading data show.

Block trades can be risky. Banks compete to buy the shares at slim discounts, and if they misjudge investor demand or there is a sudden, unexpected drop, their profit margin can quickly evaporate.

That creates a financial incentive to leak details ahead of time. Knowing which investors will buy the shares, and at what price, could help a bank fine-tune its bid and decrease its risk of losses. And tipping off top funds to a profitable trade—selling short a stock heading into a block sale tends to be a winner—could curry favor with important clients.

There are other reasons a stock might fall ahead of a block trade. When a company goes public, employees and early investors are usually prevented from selling their shares for a period of time, generally six months. Hedge funds know when those so-called lockups expire and often short the stock ahead of time.

But fewer than 20 block trades in the Journal’s list appear to be linked to the expiration of IPO lockups, and they performed only slightly worse than the rest. In the vast majority of examples, there was no obvious reason the stock might have underperformed.

Most resemble what happened to 3G Capital, a private-equity firm known for its investments in household brands. Between 2018 and 2021, 3G executed at least three block trades to trim its stakes in two of them—Kraft and
Restaurant Brands International Inc.,
the parent company of Burger King. Each time, it hired Morgan Stanley to sell the shares, and each time the price moved against it.

On Aug. 7, 2018, shares of Kraft climbed all morning, outperforming the S&P index of other big consumer-products companies. At 12:26 p.m.—right around the time that sellers of block trades typically engage banks—the stock price started to fall sharply. It closed down 1.6%, lagging the index and costing 3G Capital some $13 million in lost proceeds.

In another 3G block trade a year later, shares of Restaurant Brands cratered at noon and closed down 1.8% on a day the index rose. The famously penny-pinching investment firm—which pioneered a style of cost management and requires employees to get permission for color photocopies—lost out on $56 million in proceeds, according to the Journal’s analysis.

—Susan Pulliam and Juliet Chung contributed to this article.
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bigbarlo · May 25, 2022

Iwilltaco · May 25, 2022

bigbarlo said: ↑

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That explains the burning sensation

IDtrucks · May 25, 2022

kairo[OP] said: ↑

I present to you, my 1986 wooden dory, next to my dad's 1993 wooden dory (his has the cuddy cabin), handcrafted by the same husband and wife master boat builders. Sucia Island, August evening.

Click to expand...

a wooden boat, damn you are a glutton for punishment

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Still think TITNC3: Return of the Iceberg was peak

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kairo [OP] >_>

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jandrews Hootin' and Hollerin'

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kairo [OP] >_>

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jandrews Hootin' and Hollerin'

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TreeFortRichard Barcelona Red is the best red...

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jandrews Hootin' and Hollerin'

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kairo [OP] >_>

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TreeFortRichard Barcelona Red is the best red...

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TreeFortRichard Barcelona Red is the best red...

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TreeFortRichard Barcelona Red is the best red...

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TreeFortRichard Barcelona Red is the best red...

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Still think TITNC3: Return of the Iceberg was peak

#70681 kairo [OP] >_>

#70682 jandrews Hootin' and Hollerin'

#70683 kairo [OP] >_>

#70684 MickDog13 Well-Known Member

#70685 jandrews Hootin' and Hollerin'

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#70689 98tacoma27 is going full "SANDWICH" Moderator

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#70692 jandrews Hootin' and Hollerin'

#70693 kairo [OP] >_>

#70694 TreeFortRichard Barcelona Red is the best red...

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Products Discussed in Entire Site Forum: Stocks & Investments Thread: Still think TITNC3: Return of the Iceberg was peak

#70681
kairo [OP] >_>

#70682
jandrews Hootin' and Hollerin'

#70683
kairo [OP] >_>

#70684
MickDog13 Well-Known Member

#70685
jandrews Hootin' and Hollerin'

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Iwilltaco Well-Known Member

#70687
theesotericone Well-Known Member

#70688
jandrews Hootin' and Hollerin'

#70689
98tacoma27 is going full "SANDWICH" Moderator

#70690
TreeFortRichard Barcelona Red is the best red...

#70691
TreeFortRichard Barcelona Red is the best red...

#70692
jandrews Hootin' and Hollerin'

#70693
kairo [OP] >_>

#70694
TreeFortRichard Barcelona Red is the best red...

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TreeFortRichard Barcelona Red is the best red...

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TreeFortRichard Barcelona Red is the best red...

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TreeFortRichard Barcelona Red is the best red...

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