This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

SEC Could Use 'Naked-Shorting,' Apple Alerts

A while back, to its credit, the SEC issued an Investor Alert on one of the more egregious naked-shorting scammers, CMKM Diamonds. But the feds haven't done a thing about the stream of baloney flowing from Overstock.com, or tackled another prominent naked-shorting "victim," Novastar International, a subprime lender whose squalid story was detailed in Gretchen Morgenson's excellent new book Reckless Endangerment. An Investor Bulletin on Naked Shorting Crybabies like Novastar, Overstock and Sirius XM (SIRI - Get Report) would bring the SEC well into the 1990s. (So would the SEC actually doing something about Byrne, but I'm not expecting miracles.)

Which reminds me: How about an Investor Bulletin on Restatements? As the trade magazine BusinessFinance pointed out in 2005, restatements of previous SEC filings by public companies indicate "poor documentation of transactions, the wrong accounting treatment, lack of transparency, weak internal controls, and -- in rare instances - fraud." In other words, it's a whopping red flag. Yet there's been no Investor Bulletin on the subject, and little action by the SEC. The SEC's enforcement division -- as part of its policy of ignoring Sarbanes-Oxley -- only rarely imposes sanctions on companies that put out faux financial statements. In the case of Overstock, which has repeatedly had to restate its financials and once fired auditors who disagreed, the company has accompanied its restatements with attacks on Sam Antar, the former Crazy Eddie CFO who has described the flaws in the company's accounting on his blog. The SEC occasionally pursues companies that restate their finances such as Beazer Homes (BZH), which recently dismissed its CEO, but more often it relies on the companies to self-police. Fat chance.

Anything having to do with Apple. Of all the cult stocks out there, the one that has the most gape-jawed fans are the shareholders of Apple (AAPL - Get Report). Now, don't get me wrong: Some of my best friends are Apple users, and will never use any other kind of computer. But an Investor Bulletin on Anything to Do With Apple would warn investors of the hypnotic effect that the mere mention of the name has on investors. It doesn't even have to involve the company. A case in point: On Tuesday, the financial world went into a swoon over word that, as the Wall Street Journal Online put it, "J.C. Penney is tapping Ron Johnson, head of Apple's iconic retail stores, as its new president and eventual chief executive." "Iconic retail stores"? Sure, they're nice stores, but since they belong to Apple, they are "iconic." I'm sure that Johnson is a fine executive, but the 12% stock spike that accompanied the move was a bit too much.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CSKI $0.06 -75.00%
RINO $0.01 -40.00%
AAPL $121.30 -0.87%
C $58.46 -0.71%
OSTK $21.16 1.24%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs