How not to go to jail for insider trading

I’m not going to jail for trading in Novell. In fact, I’m not going to trial, there will be no indictment…hell, I’m not even going to be investigated.

Several years ago I identified Novell as a buyout target. I will not go into my reasoning, but let’s just say I did so before it actually became a buyout target. I accumulated some shares, and sat tight. The stock languished.

Not even on my radar, I received a notification of the upcoming shareholders meeting. I reviewed my position in the wee morning hours, and concluded it was time to bail. I’m still not going into my reasoning.

Twelve hours later Elliott Associates LP, a fund that holds an 8.5% stake in the company, offered to buy the rest of it for roughly $5.75 a share. The stock hit $6.15 in after hours trading.

I think I got between $4.75 and $4.85 for my shares. During normal trading hours. I won’t be looking at those confirms again.

No steak dinner for me.

Comments

It will be nice seeing a familiar face in the soup lines.

The past 6 years has beaten me to a bloody pulp – so much for early retirement and a nice little cabin on the Arkansas…

RK – I’ll be there with bells on.