You can pick the inside trading a significant portion of the time in some of the smaller cap companies when they make a large move in one direction for no reason. Typically the ones with inside information (random order sizes) will be buying/selling indiscriminately into retail investors (order sizes in lots of 1000). One I am watching at the moment with this type of move is Beacon Lighting (ASX:BLX) which I strongly suspect will have a very poor upcoming result.
Two weeks ago I wrote a post Why ASX Companies Should Report Quarterly. One of our readers, Frank, added the paragraph above to the comments.
Today Beacon has announced a profit downgrade and the shares are down 20%. Our market is a global embarrassment.
5 thoughts on “Frank Can See Things ASIC Can’t”
This is something that should be looked at during the Dick Smith Senate inquiry (whenever it decides to hold its hearings…)
A few months ago, GBST was even more flagrant with two directors selling down a massive portion of their holdings just prior to a substantial profit downgrade, which was a result of project delays (i.e. exactly the sort of thing that directors would be aware of prior to the rest of the market).
I reported the matter to ASIC using their online portal, which was surprisingly quick and painless to use and, to their credit, it appears that something happened, because the main culprit stepped down very soon after my report was lodged.
In life, you need to play the hand you’re dealt, and even though ASIC might be the ‘7-2 off suit’ of corporate regulators, I’d nevertheless recommend that Beacon shareholders make formal complaints via the ASIC website.
Good on you. I reported this as well. (Gbst) Maybe there were a few of us?
“Be the change you want to see in the world.” MK Gandhi.
Can you please hire Frank?