In stock markets, apparent merger announcements can be strategic ploys to temporarily prop up stock prices, while hidden block trades executed during low-liquidity periods (such as lunch hours) allow insiders to exit positions before the market reacts, creating opportunities for informed investors to short the stock before the price correction.
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The Hidden Truth About Stock Market Manipulation đđ„ #shorts #stocks #investing #financeHinzugefĂŒgt:
Bobby, >> [music] >> we are ready to roll on something sweet.
I think you want to piggyback. What do you got? Lumatherm power getting bought by Electric Sun. Price is 41, stock's trading at 35. Sounds about right.
Great. Scott Kasowitz's name is being floated as the new chairman. That's a new piece of information. That's what you pay me for.
>> Who said this deal is going to close?
Ben said it would this morning. Who is this? My new analyst. Well, if we hired you, you [music] must be a genius.
Stanford, then Wharton.
>> Okay, Stanford, Wharton. Electric Sun is controlled by Kasowitz. He also owns 19.3% [music] of Lumatherm backdoor through his stake in Southern Wind. You see that block trade last Thursday come out of nowhere? Yeah. That was Fortress cashing out their shorts before the merger.
>> Traded at 12:52 when everyone was at lunch, which tells me they wanted it to be missed. You guys caught it, which is something, I guess. But you're looking at it backward. Electric Sun's offer [music] was just a ploy to temporarily prop up Lumatherm. The block trade was Kasowitz getting out of Southern [music] Wind, getting out of Lumatherm. He wrote the story, now he's out, which means you need to be out. In fact, short. It'll slide to 32 and change after word breaks. That's a good catch, Axe. Jesus Christ.
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