I reported Insider Trading on LNUX VA Software to U.S. Securities and Exchange Commission February 23, 2006Posted by deminvest in investment.
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Tell Us About Your ComplaintApplication for Award of a Bounty concerning suspicion of Insider Trading on LNUX stock of VA Software Corporation.
The LNUX stock rose 60% in the week before earning report.
This steep strong rise is very suspicious for several reasons:
1) No news about the company and was on the press that lead to think the 2Q results would be so amazing.
2) The stock price had been steady under 2$ a share for 6 months, and suddenly grew up to 60$ with extremely high volumes in the week before earning announcements.
The Fremont software company LNUX reported net income for the second quarter of $10.5 million, or 17 cents per share, compared to a net loss of $702,000, or a penny a share, in last year’s second quarter.
Net revenue grew 57 percent to $14.7 million, compared to last year’s $9.4 million.
They reported extremely those good results Tuesday February 21 after market closed, but the stock had already enjoyed a 60% price hike because somebody probably knew trough insiders about those amazing good results.
I did sell 340 stocks on Tuesday at 2,89 $ when market was still open, because I did not know the results would be so outstanding. As a result of those extremely good results, the stock arrived to 3,88$ the day following the Q2 outstanding report.