SAN DIEGO (TheStreet) -- It was good to see the SEC finally step in and halt trading in CYNK Technology (CYNK), the apparently bogus penny stock whose shares had risen over 20,000% in the past month to a market value north of $4 billion.
They had little choice, of course: The absurdity of its move, sparked a media feeding frenzy, with an inordinate amount of original reporting by news outlets and other services, including CNBC, Business Insider, the Wall Street Journal, the Financial Times, Zero Hedge and Seeking Alpha. Arguably, it was low-hanging fruit but at least it didn't go overlooked.
But the bigger question: Where are the cops on the trading in Lumber Liquidators (LL), whose stock started slipping in the hours earlier this week before its post-close earnings warning that hammered its shares?
An even more intriguing if not egregious example is the off-the-charts put options activity Thursday in mortgage insurers Radian (RDN) and MGIC Investment (MTG). Here's how my pal Jeff Matthews described it in his blog:
Last night at 4:05 PM E.S.T. the news hit Bloomberg that the Federal Housing Financing Agency was proposing an astoundingly, stupidly strict set of standards for private mortgage insurers who do business with Fannie Mae and Freddie Mac, the net effect of which would be to reduce the availability of credit for home buyers at the very time that credit is needed to keep our economic recovery going.