SEC investigating Apple and other analysts supply chain reports for insider trading

SEC investigating Apple and other analysts supply chain reports for insider trading
Hot on the heels of the rumor for diminished iPhone screen orders for the post-holiday quarter, comes the WSJ report that the SEC is now investigating the so-called "channel checks" so many analysts provide.

Especially with Apple, as a high-interest stock, both institutional and retail investors are accustomed to receiving info almost weekly for the eventual booking, shortage or reduced orders for this and that component, and those reports might play a big role in share price swings for the day, or a period of time afterwards.

Case in point - the rumor about diminished iPhone screen orders, while not confirmed by any official source today, and it couldn't be anyway, sent Apple's share price below $500 in premarket trading.

That is why the SEC is cracking down on those analysts and their "industry sources", which might be someone working at Foxconn or other suppliers, but might as well be fabricated for the moment, or supplied to the "expert network" in the know for profit from the price swings. 

Research shops that have issued reports on Apple's supply chain are currently consulting with law firms, the Journal says, as the SEC is more interested whether there has been a break in confidentiality agreements, rather than whether the information from the supply chain sources has been confirmed and true. We'll see how it all pans out, but suppliers are usually the main source of rumors about upcoming handsets, so that well might be drier this year, if the SEC cracks down on intermediaries.

source: WSJ



1. Mxyzptlk unregistered

I don't see how this investigation is justified.

4. naptown2

Posts: 70; Member since: Dec 29, 2012

cause the SEC can do whatever it wants

7. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

With what happened today, this investigation would actually benefit Apple. That leak about display orders being reduced made Apple's shares go down. Now of course if the leak had said they were increasing their display orders Apple's shares would have gone up. The point is that leaked info is being used to manipulate the stock market, in particular any companies that are involved with the iphone. Just because Apple is being investigated doesn't mean it's bad. They, like any other company, are not above the law. They have rules to follow like everyone else. Being a fan is one thing, following someone absolutely blindly is not good. It's not realistic, ad they will eventually let you down.


Posts: 1461; Member since: Mar 09, 2010

This is what happens to any stock when sales slow , and euphoria starts to wane

8. Droiddoes unregistered

You wouldn't. Tim Cook could take a sh*t directly into your mouth and you would thank him and say "please sir, can I have some more?" Pathetic.

11. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

"I don't see how this investigation is justified." Of Course you don't see.

16. jsdechavez

Posts: 818; Member since: Jul 20, 2012

Because Apple asked them to.

17. donfem

Posts: 708; Member since: Mar 30, 2011

conspiracy theorist

2. Nathan_ingx

Posts: 4769; Member since: Mar 07, 2012

Ooo... The fruit is getting more and more bitter day by day.

3. rusticguy

Posts: 2828; Member since: Aug 11, 2012

So this is why TIM Cook was headed to China ... to investigate who's leaking such nasty info which is causing shares to slide or he knew this info would leak so was there to prevent the leak ... :)

5. ramonleonjr62

Posts: 48; Member since: Oct 17, 2012

l agree wiz u

18. remixfa

Posts: 14605; Member since: Dec 19, 2008

more than likely it was actually to try to directly strong arm China Mobile into carrying the iPhone at an Apple approved cost to keep margins high. Considering they had a sit down with China mobile, that's the most likely scenario. Apple traders benefit from this. They all call each other and talk about the latest news, then report it to the media. While the media is reporting it, they are selling their shares which causes a loss in value. When the media reports come out, more people sell shares.. which makes the value drop further. Give it a day or 2, buy back your shares at a cheaper price, wait for it to go up a bit... then start a new rumor. Rinse and repeat. Making millions for nothing.


Posts: 2817; Member since: Oct 03, 2012

The fruit keeps rotting and rotting eventually it will not exist anymore!

15. -SEUL8TR-

Posts: 113; Member since: Jan 13, 2013

Just give it a another few years, shares would tumble to $100......!

9. Droiddoes unregistered

LMFAO, could this company become any more disgusting or immoral? Burn baby BURN!


Posts: 1461; Member since: Mar 09, 2010

I did predict this through my Elliot wave post here over a month ago that this would happen ad that $485.00 may probably be a target. Elliot waves are based on emotion of euphoria and fear of greedy investors and their reactions to technical highs like the wave 5 top that I posted that Apple was probably in. I predicted Apple would try to retrace back to the higher target in a "b" wave then fail as a "c" wave to lower lows. Now the SPX market will pull back after the 1st quarter, and then let's see how the Feds quantitative easing keeps this going. Possible pull backs 1340-1285!

13. XPERIA-KNIGHT unregistered

wow, good stuff you see them falling again "after" a possible 1st quarter comeback?


Posts: 1461; Member since: Mar 09, 2010 I said it all in this thread link, and many other threads and look what happened from my November prediction about the stock, and it unfolded just like I said that it would. I have taught, and studied Elliot waves and traded for real with real money not fiction!

14. InspectorGadget80 unregistered

Apple should also be ingestigated how they keep banning products and why their trial was so short &a awarded.

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