Posted by Dave Bull at 8:42 AM, February 20, 2006
NEW YORK (UP News) - Wall Street was abuzz with rumour again this afternoon, as markets around the world reacted to the news that the SEC has begun investigations into possible cases of insider trading, stemming from a series of 'buy' orders placed against shares of Woodblock.com, global leader in woodblock printmaking. The agent in charge of the preliminary probe met with reporters this morning, and briefed them on what is known to date. "We have identified a few anomalies in recent trading. The market at the moment is not happy with this company, and the shares are following a downward trend. Now we know contrarian behaviour when we see it, but we also know insider trading when we see it, and what we are seeing here follows that pattern. A few individuals are seeking to make heavy purchases of the company shares, and we can only assume that they are doing so on the basis of inside knowledge not available to other investors."
Company officials responded to news of the investigation with a terse statement reiterating their previous comment that the major announcement expected later in the month would be of great interest to potential customers. The statement did however, contain new information to the effect that the organization "has been greatly encouraged by the support shown by interested parties", although no specifics were given.
The SEC spokesman later provided additional details on the ongoing investigation, hinting that 'related' companies were possibly involved. He added, "Top company officials of Woodblock.com have made statements that resulted in an immediate drop in share prices. If these depressed shares are being scooped up at a bargain price by persons with inside knowledge of the pending re-organization plan, this is cause for grave concern to regulators."
