Intralinks (IL) Falls 7.5%+ on No News, Possible Insider Trading Alert!

After trading flat for days, Intralinks just lost over 7.5% on no news. For those of you who don't know, "IntraLinks, formerly TA Indigo Holding Corporation, is a global provider of software-as-a-service (SaaS) solutions for securely managing content, exchanging critical business information and collaborating within and among organizations." The company serves financial institutions host data rooms, etc. Now the company performed well in 2010, missed guidance slightly this spring, and traded down 30%. Over the past two weeks, it performed well enough to stay in a band around $20.00/share.

Through the last four down days, IL's stock moved with the market, staying about $20, then gave up almost 10% of its value during the first half of the trading day. The last time I saw a move like this on no relevant news was for Interoil Corp. in 2007, right before an insider trading investigation (which was eventually resolved, and the stock performed well):

InterOil has ‘undiscovered resources’ and calling a field ‘world class’ isn't the same thing as actually knowing how much of a natural resource exists there. InterOil is capitalizing on the confusion between undiscovered resources (which are unknown quantities) and discovered resources. And the victims are the investors who falsely believe that InterOil has known quantities of natural gas, when in fact they do not.

Minkow has an entire website -- www.internooil.com -- devoted to taking down the company. It includes a commissioned geologist's report that allegedly shows "InterOil uses hype and smoke-and-mirrors techniques to bilk investors out of hundreds of millions of dollars.” To be fair, Minkow is also paid for his research and often takes short positions in the companies he trashes.

Another felon-turned-fraud-investigator, Sam Antar, says InterOil's stock is boosted by a manipulation scheme involving InterOil, John Thomas Financial, and Clarion Finanz AG:

I believe that InterOil with the assistance of Clarion Finanz concealed John Thomas Financial’s involvement in helping it raise $95 million through a private placement of convertible debt securities. Clarion Finanz acted as a buffer between InterOil and John Thomas Financial to help InterOil hide John Thomas Financial's role in raising funds. Afterwards, InterOil filed false and misleading reports with the Securities and Exchange Commission in an effort to conceal John Thomas Financial’s role in helping the company raise $95 million in convertible debt.

(Thomas Belesis, CEO of John Thomas, told us in a recent interview that Antar is a liar and an "idiot.")

Besides the technical back-and-forth, the debate has sometimes gotten nasty.

Minkow released emails from late 2009 apparently from Susuve Laumaea, Senior Manager for Media Relations at InterOil that, among other things, said:

“You are a scum of the earth, a creepy-crawlie who should have been locked away and the key thrown away too so that you rot away like the dung heap you are. You are a coward of the highest order, and you have a known short position, and you send lies out hoping to profit on the chance that your lies can manipulate share volatility down and deceive good shareholders. I can't use you as crocodile feed because you are too poisonous ... those alligators will die eating you, cooked or uncooked.”

Courtesy of Lawrence Delevigne

 

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