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Companies hide negative news with unrelated press releases alongside SEC filings

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Re: Companies hide negative news with unrelated press releases alongside SEC filings

#71

Post by BionicAnomaly »

scrum-treats wrote: post #27
breput wrote: post #6

Earlier quoted context omitted.

This is practically real time: https://www.sec.gov/cgi-bin/browse-edgar?company=&CIK=&type=... also available as an RSS/Atom format feed: https://www.sec.gov/cgi-bin/browse-edgar?action=getcurrent&C... There is also a paid-for service called PDS ( https://www.sec.gov/oit/announcement/public-dissemination-se... ) which isn't necessarily any faster but can be more reliable.

Thanks for the links. Interestingly, I noticed Amazon's CEO of Retail, Doug Herrington, dumping sizable amounts of Amazon stock[1]. This activity is coupled with growing complaints about Amazon's quality of goods[2], delivery[3][6] and ability to return those goods[2][4][5][8][9]. Amazon is now requiring customers to file a police report in order for their credible return to be accepted[7][10][11]. Amazon is also can…

When you notice that X person is "dumping sizable amounts of stock", and use that as your foundation for a wave of further speculation, the first thing you should consider doing is looking at the actual filing[0].

Which of course contains the pertinent information: "This transaction was effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on 11/23/2022."

So did this person "dump" stock? Sure. Did they choose to do it at this particular point in time? No, a predetermined trading plan did.

[0]https://www.sec.gov/Archives/edgar/data/1018724/000110465923...

Re: Companies hide negative news with unrelated press releases alongside SEC filings

#72

Post by kortilla »

nevermindiguess wrote: post #49
xwdv wrote: post #9

Earlier quoted context omitted.

Before you think about making something that quickly reads 8-K filings and acts upon it: don’t bother. A bunch of entities are already doing this way faster than you ever can through various methods and by the time you get the data the opportunity to act is gone.

Nasdaq closing auction ends at 4pm. Reports come out later. Participants trading on 8-K cannot trade the news immediately. Orders can be executed only on Monday during opening auction. Also, you assume their trades are enough to move the market and neutralize the opportunity, which may not be the case. Perhaps they can trade off market. I’m just saying that it may not be a done deal as you describe it, but I may be m…

Anything of relevance has significant AH volume. You’re too late by Monday morning.

Re: Companies hide negative news with unrelated press releases alongside SEC filings

#73

Post by gniv »

scrollaway wrote: post #62
gnicholas wrote: post #33

This reminds me of Footnoted*, [1] a site that surfaces useful info that companies hide in footnotes, bury on a Friday afternoon dump, etc. I think there's a weekly newsletter that comes out after the Friday news dump has been picked through. EDIT: found the newsletter [2] 1: https://www.footnoted.com/ 2: http://fnd.footnoted.com

This seems like a very good use case for GPT models: Surfacing buried information.

I've had this thought before -- that there's lots of good ideas and insights hidden in the deluge of comments on hn, reddit etc -- and GPT might be used to find them. But I haven't figured out a good prompt yet.

Re: Companies hide negative news with unrelated press releases alongside SEC filings

#75

Post by gniv »

vitorsr wrote: post #43

Waiting for the Matt Levine column ‘Are Unrelated Press Releases Securities Fraud?’

> ‘Are Unrelated Press Releases Securities Fraud?’

You jest, but they actually could be. One scenario would be for insiders to trade on the information after they released it publicly. So the temporary obfuscation might give them time to trade before the news had time to affect the stock.

Re: Companies hide negative news with unrelated press releases alongside SEC filings

#76

Post by defrost »

p0w3n3d wrote: post #74

Isn't this called damage control and is the most widely used pattern in politics too?

The Commonwealth (Australia | UK at least) terminology of recent years is to call this Throwing a dead cat on the table a technique perfected by some Australian|New Zealand marketing consultants that turned to politics and advised both the AU and UK Governments.

Boris Johnson (former UK PM) perfected the technique .. no matter how bad an actual real news worthy political event might be .. no paper pays attention if you announce something totally bonkers and ridiculous at the same time.

Good Grief! Did you see that!! He threw a dead cat on the table!!!

Re: Companies hide negative news with unrelated press releases alongside SEC filings

#78

Post by [deleted] »

jesterman wrote: post #65
gnicholas wrote: post #33

This reminds me of Footnoted*, [1] a site that surfaces useful info that companies hide in footnotes, bury on a Friday afternoon dump, etc. I think there's a weekly newsletter that comes out after the Friday news dump has been picked through. EDIT: found the newsletter [2] 1: https://www.footnoted.com/ 2: http://fnd.footnoted.com

Sounds like most of the value in that site is locked behind a two thousand dollar a year paywall… wow. The few articles you can see are interesting though.

[deleted]

Re: Companies hide negative news with unrelated press releases alongside SEC filings

#79

Post by jsemrau »

scrollaway wrote: post #62
gnicholas wrote: post #33

This reminds me of Footnoted*, [1] a site that surfaces useful info that companies hide in footnotes, bury on a Friday afternoon dump, etc. I think there's a weekly newsletter that comes out after the Friday news dump has been picked through. EDIT: found the newsletter [2] 1: https://www.footnoted.com/ 2: http://fnd.footnoted.com

This seems like a very good use case for GPT models: Surfacing buried information.

Yes. Indeed. I am working on this for investing. Where I believe the value proposition is the strongest.

Re: Companies hide negative news with unrelated press releases alongside SEC filings

#80

Post by refurb »

BionicAnomaly wrote: post #71
scrum-treats wrote: post #27

Earlier quoted context omitted.

Thanks for the links. Interestingly, I noticed Amazon's CEO of Retail, Doug Herrington, dumping sizable amounts of Amazon stock[1]. This activity is coupled with growing complaints about Amazon's quality of goods[2], delivery[3][6] and ability to return those goods[2][4][5][8][9]. Amazon is now requiring customers to file a police report in order for their credible return to be accepted[7][10][11]. Amazon is also can…

When you notice that X person is "dumping sizable amounts of stock", and use that as your foundation for a wave of further speculation, the first thing you should consider doing is looking at the actual filing[0]. Which of course contains the pertinent information: "This transaction was effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on 11/23/2022." So did this person "dump" stock? Sur…

Precisely. If you're in an executive position at a company, you're an "insider" pretty much 100% of the time so you have no choice but to sign up for a trading plan that dumps stock on a regular basis regardless of the price.

And the reason why his sales grow is likely because his stockpile of vested equity has grown over time, so selling "10% of holding" is going to go up every year.

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