Dendreon (DNDN)

Found this story/article interesting:

Obviously, I think the Mafia part might be a little absurd (then again they did get caught with $134 Billion in fake Treasury Bills recently), but found the article has some merit due to the drop that occurred earlier this year.

http://www.deepcapture.com/michael-milken-60000-d… [Part 1]

http://www.deepcapture.com/michael-milken-60000-d… [Part 2]

http://www.deepcapture.com/michael-milken-60000-d… [Part 3 -Updated]

11 Comments
 
Best Response
MezMind elaborating on the mafia bit?

In the interest of letting sleeping dogs lie, I'm not going to go into a great deal of detail here.

In the days before the Internet, it was ridiculously easy to manipulate the market in many different ways. Back then, the bad guys owned a lot of different shops and shit was not on the level. The only other thing I will say about it is that the SEC was way out of their league when it came to dealing with the problem.

After the advent of the Internet, a lot of the bad guys evolved. This is where it gets really sketchy for me, so pardon me for being vague. I was no longer involved in equities (where the heaviest concentration of mob influence exists), but some of the crew I used to run with became serious players in the hedge fund and naked short selling world.

It was not unheard of for a research analyst who published a positive report on a company these guys were shorting to get a visit from Joey Bag-O-Donuts and to get tuned up with a ball bat if they didn't immediately publish a sell rec.

These guys have so much stroke in the highest echelons that the regulators turn a blind eye to their shenanigans.

To be fair, much more damage was done to the market through OTC derivatives trading by BB banks than the mob could ever hope to inflict. But to think they're not seriously involved in the day-to-day operations of the market is to be naive.

The WSO Guide to Understanding TARP

 

Stock @ 26.08 and the Nov 26 straddle trades 8.9 x 9.55 any sellers of that fat straddle? Will DNDN have less than a $9 range in the next 104 days?

Sheesh.

 
dr_seanStock @ 26.08 and the Nov 26 straddle trades 8.9 x 9.55 any sellers of that fat straddle? Will DNDN have less than a $9 range in the next 104 days?

Sheesh.

Not 10 days later, DNDN drops $2 and the Nov 26 straddle trades 8.4 x 8.85, longs could've made $2 on the move down but lost small on decay...

And now DNDN trades @ 23.99 w/ the Nov 24 straddle trading 8.15 x 8.85 looks like vol came in a smudge...anybody want to take me on one side of that straddle? hypothetical of course haha

If you're more interested in short term the July 24 straddle market is about 2.50 - 2.60 any takers???

 

Good stuff, going to be looking out for more updates.

Supposedly there was a book written about the topic called "Nothing But Money" by Greg Smith. No idea how good of a read it is though so if anyone has read it I'd be curious to hear what they thought.

 

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