Total coincidence: Intel Vulnerabilities Exposed and Stocks Sold

FrgMstr

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We discussed Intel's CEO selling a boatload of stock ($24M) a few weeks ago. and how this worked out with Intel reporting its CPUs Meltdown and Spectre flaws. The Register is now reporting that the date of those stock sales just happen to coincide with disclosure of the vulnerabilities. There is some other interesting information to read up on in the article as well.


The date of the disclosure to OEMs is likely to raise eyebrows as it happened on the same day Intel chief exec Brian Krzanich sold shares in his company worth $25m before tax.
 
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oldmanbal

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I was defending him last time you posted the article, this time I ring the tiny bell of great shame. . .shame. . .shame. . .
 

FrgMstr

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The Register now? You guys are really reaching for "sources".
That is a solid story by The Reg. Go read it. Most of the source material was in French, so I did not point back to the source. If you could get a full list of your approved sources for content, I will make sure I get to posting by your guidelines immediately.
 

FrgMstr

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I hadn't known about that. I don't follow Twitter for the most part. Now I see why Kyle has so many issues with this guy.
Actually I never mentioned Raul Sood in any of my news posts. I have not talked to Raul in a decade or mentioned his name that I can remember since he sold VoodooPC to HP. He seems to have issue with my opinion however. But there are two other threads running now that we can have that discussion in. :)
 

Dead Parrot

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Timeline as I understand it:

Intel warned in June about flaws
Stock sale planned in October
Secret memo to OEMs on November 29
Public stock sale on November 29
Profit!
Public learns of flaws on Jan 2nd while Intel planned on disclosing on Jan 9th.
Intel stock up on earnings report, Jan 26th.

Be interesting to see the memos between the CEO and the Intel lawyers about the planned sale.
 

Spidey329

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Mind you, he sold all shares except those he is required to hold for the position of CEO.

They get around the insider trading regs via a loophole. Scheduled trades. If PersonA becomes CEO, they can set up trades in the future on specific dates (say sell all on 1st trade day of month). You can always cancel these orders as they're not executed yet, if some bad news is in the pipeline, you simply choose to not cancel the order.

As CEO, you also have the ability to conveniently make the disclosure date after your scheduled trade time.

Now, if he did schedule this trade AFTER June (e.g. October), then it'll be an interesting case for the SEC. He's acting on information only a handful of people know. You'd think that it'd be illegal as soon as INTEL found out about it, not as soon as the public found out about it.
 

SLee

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The ironic thing is that Intel's stock price today is over 10% higher than it was on Nov 29. So even if the CEO never has to account of his actions in the legal system, at least there's some financial justice in that he left money on the table with the sale.
 

-PK-

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Mind you, he sold all shares except those he is required to hold for the position of CEO.

They get around the insider trading regs via a loophole. Scheduled trades. If PersonA becomes CEO, they can set up trades in the future on specific dates (say sell all on 1st trade day of month). You can always cancel these orders as they're not executed yet, if some bad news is in the pipeline, you simply choose to not cancel the order.

As CEO, you also have the ability to conveniently make the disclosure date after your scheduled trade time.

Now, if he did schedule this trade AFTER June (e.g. October), then it'll be an interesting case for the SEC. He's acting on information only a handful of people know. You'd think that it'd be illegal as soon as INTEL found out about it, not as soon as the public found out about it.
He filed his 10b5-1 trading plan on Oct. 30 to sell all but the minimum stock in 30 days.
 

viper1152012

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If he had sold a little off....ok. But he went down to the minimum he was required to possess......so....

Shame (rings bell) Shame (rings bell) Shame......
 

heatlesssun

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Ironically if this were a shady deal the stock is worth more now than when he sold it. That makes a case against this very tough.
 

sixpac

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The fallout from Meltdown and Spectre hasn't even been realized yet.. these peeps are just hedging their bets and keeping their wallets safe. Just wait until the shit really hits the fan. There will be blood.
 

nilepez

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The way people are whining, you'd think the stock was down since he sold it, as opposed to being up 15% since he sold it.
 

Tyns

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It was a terrible sale, 11% run today. BK would gladly take those shares back. BK also had a pretty damn good idea what the earnings results would be.

Too bad for you anti-Intel boys
 

tetris42

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The way people are whining, you'd think the stock was down since he sold it, as opposed to being up 15% since he sold it.
I know, right? I swear, it's nothing but whiners in this forum. Whining how he committed insider trading, whining how he's breaking the law and how normal people go to prison for that, whining about the rich being above the the law, blah blah, nothing but whining! None of that matters if he could have become even MORE wealthy!
 
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The thing is that Intel stock was at a 52 week high yesterday, so if he would of waited he would of made more money. I know I sold 750 shares at $48.00 and if I would of waited 1 more day, I would of been able to sell at over $49.00.
The price when he sold was around 46 if I remember correctly maybe a little lower.
 

Satyrist

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We all saw right threw the argument of timing on this when it happened......he still gets a golden parachute if he gets fired.

And this cocksucker strikes me as being arrogant enough that not only does he expect a bonus this year, (and "accidentally" laying off thousands of engineers) he will FUCKING DEMAND AN 8 FIGURE BONUS.

*shrug* And if this goes anything like the Equifax debacle, the worst that will happen is that he gets screamed at tersely for like a day or two, by powerless congressmonsters on Capitol Hill.
 

SomeoneElse

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And this cocksucker strikes me as being arrogant enough that not only does he expect a bonus this year, (and "accidentally" laying off thousands of engineers) he will FUCKING DEMAND AN 8 FIGURE BONUS.

*shrug* And if this goes anything like the Equifax debacle, the worst that will happen is that he gets screamed at tersely for like a day or two, by powerless congressmonsters on Capitol Hill.
He will scoot on by with nothing more than an stern look.
 

MacLeod

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Intel stocks haven't dropped all that much. It's still in the mid $40 range and actually closed at $50 Friday. Looks like the CEO sold his for no reason. Intel's a good stock. I have a bunch of it because it pays a good dividend.
 
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