A boyish drug company entrepreneur, who rocketed to infamy by jacking up the price of a life-saving pill from $13.50 to $750, was arrested on securities fraud related to a firm he founded. Martin Shkreli, 32, ignited a firestorm over drug prices in September and became a symbol of defiant greed. The federal case against him has nothing to do with pharmaceutical costs, however. Prosecutors charged him with illegally taking stock from Retrophin Inc., a biotechnology firm he started in 2011, and using it pay off debts from unrelated business dealings. He was later ousted from the company, where he’d been chief executive officer, and sued by its board. http://www.bloomberg.com/features/2015-martin-shkreli-securities-fraud/
Clearly insiders were selling/shorting ahead of this news. Just look at a one week chart of KBIO...blatant front running!
Well his last tweet was 8 hours before the Bloomberg report, so he was arrested some time after 11 last night.
Earlier the same day Bloomberg published a story on Martin as brilliant short seller. http://www.bloomberg.com/news/artic...ma-ceo-also-a-better-short-seller-than-chanos
Unlikely. The insiders are Shkreli and his friends, who bought 70% of the shares to pull off the big short squeeze that propelled this up from $2 and out of liquidation. They are subject to the swing profits rule for 6 months, so if they sold, they're not keeping the gains. As for the suckers, er, investors who bought 10-15% of the company via their recent PIPE offering at $29, well, those guys should ask for more than a repricing down to $24. Looks like the stock is at half that before it got halted this morning.
Let's see if he tweets from jail http://www.cnbc.com/2015/12/17/turing-pharmaceuticals-ceo-shkreli-arrested-by-fbi-reuters.html
...That's why one should trade macro indexes. -- you don't have to worry about individual company bs.