SAC Tech Trades Central to U.S. Indictment

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

July 25 (Bloomberg) -- Cory Johnson looks at SAC Capital's technology trades that may be central to the SEC indictment. He speaks on Bloomberg Television's "Money Moves." (Source: Bloomberg)

I think it's important to look at what kind of stocks were selected here.

These are alleged insider trading cases.

A lot would have to be proved.

The kind of stocks that were selected by sac reveal a lot about why they were interested in these companies and why they traded so heavily around these companies.

A lot of technology stocks involved are big names we know of, such as yahoo, but when we look within them we see that a lot of them were semiconductors.

Telecommunications names, 13% of those.

Pharmaceuticals were only 8%. a strong focus on technology among the companies mentioned in the indictment.

Why tech stocks?

This is about stocks that get traded a lot.

A lot of the stocks will trade volatility right around earnings.

-- volatilely right around earnings.

A stock that trades fight a bit.

I didn't examination of the volatility of the stocks.

The volatility of the stocks in this indictment are so much greater than all the stocks within the s&p 500 that it does not even compare.

Nearly three times the volatility of the average.

That could be a chicken and egg situation.

Sac trade so much, they affect the volatility of stocks.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change