RIMM- Fake first headline:

Rearden Metal · Sep 28, 2006

Background: About an hour after today's close, RIMM's earnings report still hadn't been released yet. Then came the headline (on briefing) I'm paraphrasing- "RIMM to delay earnings release due to options backdating problems". The stock instantly dropped from 86 to 80 in AH trading.

Then, less than a minute later comes the blowout earnings release and the stock rockets straight up into the mid-90's.
A few minutes later, briefing was kind enough to mention that the first headline was a mistake (Gee- ya think?) Then Briefing erases both the fake headline and the correction, as if both had never happened.

My questions:

1) Did this fake headline appear anywhere other than briefing?
Was Bloomberg's news on RIMM accurate?

2) Where the fuck does fake news come from? Anyone else get the feeling this was anything but an honest mistake?
IMO, this looks like a deliberate manipulation, designed to create an opportunity for the manipulators to pick up some cheap stock.

mushinseeker · Sep 28, 2006

Hi RM,

I think you will find the guys who did this news release also bought about 30-60k calls today in the 90,95 strikes.

Time to call Eliot Spitzer.

Longhorns · Sep 28, 2006

Hi RM. I posted this on page 2 of the other RIMM thread....

Quote from Longhorns:

The first headline that came out just seconds before the earnings release was about the "internal investigation into backdating of options". RIMM dropped almost almost 5 points (almost hit 80 dollars!!!). Then the #'s were released and it went ballistic.

Funniest part is that the company says their earnings #'s "are not reliable", and then they blow away their #'s and everyone panics to buy!

I think this was a carefully planned strategy by someone BIG.

Two things really make me convinced...

1) Delaying the earnings release until 5:30 meant that there were far fewer traders around (and therefore a severe lack of liquidity which added fuel to the short squeeze).
2) Why start your BLOWOUT earnings report with a headline that says you're investigating company options practices?
Answer- Get everyone to crush the bids for 5 points AND THEN drop a massive guidance boost on everyone (therefore panicking out even more shorts and adding fuel to the short squeeze).

Longhorns · Sep 28, 2006

Quote from Rearden Metal:

My questions:

1) Did this fake headline appear anywhere other than briefing?
Was Bloomberg's news on RIMM accurate?

2) Where the fuck does fake news come from? Anyone else get the feeling this was anything but an honest mistake?
IMO, this looks like a deliberate manipulation, designed to create an opportunity for the manipulators to pick up some cheap stock.

1) It first appeared on Reuters. Strangely, Reuters cited CNBC as the source of the story...yet CNBC was covering the HPQ CEO's testimony and AT NO POINT did they ever mention RIMM or their earnings delay. A few seconds later, it hit Briefing, Dow Jones, and a few other news services.

2) Something was definitely shady. Manipulation at it's finest.

krazykarl · Sep 28, 2006

Quote from Longhorns:

1) It first appeared on Reuters. Strangely, Reuters cited CNBC as the source of the story...yet CNBC was covering the HPQ CEO's testimony and AT NO POINT did they ever mention RIMM or their earnings delay. A few seconds later, it hit Briefing, Dow Jones, and a few other news services.

2) Something was definitely shady. Manipulation at it's finest.

agreed - but how to profit from it?

short the open? or will the wall st. machine not let this thing deflate.......?

Longhorns · Sep 28, 2006

Quote from krazykarl:

agreed - but how to profit from it?

Here's my plan of attack for RIMM tomorrow*....

short, long, long, short, long, long, short, long, short, short, short, long, short, long, long

*(Might not be in that exact order, but you get the idea).

joeyata1 · Sep 29, 2006

cnbc did list the headline" rimm cancelled conference call" as hpq pres was talking. did anyone notice the maniac action before any news came out. there were several 1 and 2 pt spikes with huge trading up and down. it just shows froth and greed are back.

bearnbull · Sep 29, 2006

If the authorities can prove that this was indeed a manipulation can RIMM be penalize? I hope they do. It's almost like they were aiming at day traders and swingers--with this kind of report.

Rearden Metal · Sep 29, 2006

Quote from Longhorns:

2) Why start your BLOWOUT earnings report with a headline that says you're investigating company options practices?
Answer- Get everyone to crush the bids for 5 points AND THEN drop a massive guidance boost on everyone (therefore panicking out even more shorts and adding fuel to the short squeeze).

Well, the options investigation thing is real.
But briefing really did report that RIMM's earnings release has been delayed/postponed as a result.
The headline implied that the earnings release would be delayed by days, and wouldn't be coming out today at all.

Obviously, that bit of fake news couldn't have possibly come from RIMM.

scriabinop23 · Sep 29, 2006

Quote from MushinSeeker:

Hi RM,

I think you will find the guys who did this news release also bought about 30-60k calls today in the 90,95 strikes.

Time to call Eliot Spitzer.

forget today. look at call volume 9/20 !!