Inside the Real Wall Street-A Recommended Read
By Eileen on Mar 31, 2008 in EGO Investment Club
Gene Marcial is a veteran financial journalist who easily beats the averages in his weekly column of stock market picks. Even for someone who does not regularly read Business Week it is well worth the effort to make a regular habit of Inside Wall Street, which will cover on average three stocks per week.Those familiar with recent current events might recall just how influential the Inside Wall Street column is.
Back in 2006 two employees at the Business Week printing plant in Wisconsin were charged with smuggling out advance copies of Business Week. The two were paid to smuggle the advance issues out by two employees of Goldman Sachs, Eugene Plotkin and David Pajcin, who used pre-publication information from the Inside Wall Street column to trade stocks.
Needless to say, the Goldman traders were charged with insider trading. Plotkin and Pajcin even had recruited the two men at the printing press to get jobs there for the purpose of smuggling out pre-publication copies and/or disclosing the names of the stocks mentioned in Inside Wall Street. One of the Business Week printing press smugglers was only 20 when arrested, and faced 15 years in prison. GS trader Euegen Plotkin was only 26 when he was arrested, and faced up to 70 years in prison.And in the most bizarre twist in this Inside Wall Street insider trading case - the SEC filed civil insider trading charges against Pajcin’s Aunt Sonya, a former underwear factory worker in Croatia, who was also trading on the smuggled info.
Plotkin and Pajcin traded about 20 different stocks on trading days prior to Inside Wall Street’s publication, and made approximately $340,000 on the trades. This scheme and its financial aftermath point to the expected rise a stock makes following a favorable mention in Inside wall Street.
And in case anyone is wondering at this point, two of the stocks profiled in the April 7th column of Inside Wall Street are: BMY - Bristol-Myers looks like a take-over target, and LEH - Lehman Brothers tanked following the Bear Stern debacle and the feeling is that those Lehman fears may be overstated. Goldman has a 12 month price target now of 58 a share.If you wish to know what the third stock is that is mentioned this week you will have to read Inside wall Street to find out!
