- Tools for Investors
- Stock News
- Investing Ideas
- Econ & Policy
- Personal Finance
The Securities and Exchange Commission is reportedly probing Steven Fishman, the CEO of discount clothing retailer Big Lots Inc. (NYSE:BIG), over a dubious sale of company stock. Fishman, who coincidentally informed his board on Tuesday that he will be retiring, sold $10 million in stock about one month before a regularly-scheduled filing revealed a slowdown in sales that triggered a 24 percent single-day drop the stock price.
The SEC investigation into Fishman’s trade is just one of several that has made headlines recently. The Wall Street Journal published a report last week examining thousands of trades made by executives and revealed a pattern that suggests the regulatory environment surrounding executive trading of company stock is highly disorganized and presents a lot of gray area that leaves room for shady behavior.
Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.
Fishman is not even the shadiest character in this story. A father-daughter pair, Jerrold Rosenbaum and Beth Angelo of Body Central (NASDAQ:BODY), a specialty retailer of women’s apparel, sold a combined $2.9 million of company stock in the three days immediately preceding an announcement that slashed the company’s 2012 earnings estimate. The news triggered a 48.5 percent decline in the company’s stock price.
The report details other examples of questionable behavior by executives at companies buying and selling their own stock at highly opportune times. A common thread is that most companies involved are relatively small. Body Central has a market capitalization of about $163 million and an average daily trade volume of just 260,794 over the past three months. There are not a lot of people watching these stocks…
Don't miss one of the biggest bull markets in history! Covers Gold, Silver, Gold & Silver stocks, and miners.
There's always a bull market in some sector! Find the best opportunities in commodities.