Mark Cuban's Unfinished Business
When Mark Cuban's Sharesleuth insider-trading vehicle performed a hatchet job on a little company called Xethanol in early August, Cuban disclosed some unfinished business: he had taken a short position in not just Xethanol, but also a company called UTEK, a Xethanol shareholder.
The UTEK short position was "underwater," Cuban disclosed at the time.
Well, Sharesleuth's second article has come out, and it is about a company called (surprise surprise) UTEK!
Cuban has come out from under water. His short position, initially 25,000 shares, has swelled to 75,000 at an average price of $20. The shares are now trading at about $12, thanks to Sharesleuth.
Cuban's new "business model" sure is working! All you have to do is to hire a journalist to write market sensitive articles, and trade in advance of each story's appearance. Disclose your trading position and it's all legal.
Unethical as "journalism" and slimy as all hell, but legal.
Gee, I wonder what Sharesleuth's next target might be? I guess only Sharesleuth, Mark Cuban -- and his stockbroker -- know the answer to that.
© 2006 Gary Weiss. All rights reserved.
Wall Street Versus America was published by Penguin USA on April 6.
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