Blue Coat Systems (BCSI) is falling off a cliff going into earnings post 4 PM... down nearly 5% in a series of selloffs throughout the day. So if the company reports bad earnings will the attorneys at the SEC care to look at whom was doing the selling ahead of the news? Nah... too difficult to spot such anomalies such as this (cough)
Only reason I care other than morbid curiosity is we were stopped out of a long position last Thursday:
Not very heartening action in Blue Coat Systems (BCSI) this morning - the infamous drop 6% on no news on a positive day for the market. A week before earnings.... I've seen this story far too many times. Unfortunately the SEC almost never sees it. Let's keep today in mind if a disappointment happens on the 25th.
Always makes me think someone in the know is heading for the exits - volume is already 400K [before 11 AM] and this puppy does under 800K a day.
Plus we are short one of BCSI's main competitor's Riverbed Technology (RVBD) which is one of those stocks which has shown ZERO signs of life as the market rallies day after day the past week. (Always a good sign it will demon drop the next time the market corrects circa 2014)
My popcorn is out - I will love to be proven wrong and Blue Coat reports resoundingly good numbers but to all (except the SEC) if you play the probability game - this is starting to look very shady. A selloff on a huge volume spike a week ahead of earnings, and then a material drop the day of? Even if the grassy knoll theory is incorrect, I would not touch this with my investors 10 foot pole!
Short Riverbed Technology in fund and personal account