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View Diary: LOOKS LIKE INSIDER TRADING ERIC CANTOR, Please Explain (123 comments)

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  •  I see nothing here that points to insider trading (8+ / 0-)

    I'd love for it to be true... but Cantor bought in 2005 (at presumably somewhere between $16 - $25) and held it through 2008's $3 range. What the hell kind of insider information do you think he's getting???  Seems more likely that Cantor, like many others, bought at once it went public (in 2004) because it was named one of the country's top chains.

    •  His wife became a board member the year (3+ / 0-)
      Recommended by:
      Lujane, Shaking the Tree, DRo

      prior to that, in 2004. What would be interesting to note is does Eric Cantor sit on any committees that control regulation, purchase, or promotion of the pizza industry. I don't see that called out in this diary explicitly.

      "What profit a man, if he gain the world, but has to pay taxes on it?" Paul 8:36

      From the Gospel of St. Ron Paul in the Teachings and Misunderstandings of the Words of Adam Smith

      by ontheleftcoast on Fri Jan 27, 2012 at 02:33:28 PM PST

      [ Parent ]

      •  She became a member the week of his DPZ purchases (7+ / 0-)
        ANN ARBOR, Mich., Oct. 20 PRNewswire-FirstCall -- Domino's Pizza, Inc., (NYSE:   DPZ), the recognized world leader in pizza delivery, announced Diana F. Cantor has been named to its Board of Directors, effective at its October 18, 2005 meeting.  Ms. Cantor will serve on the nominating and corporate governance committee.

        http://webcache.googleusercontent.com/...

        Domino's Pizza     Purchased     Oct 12 2005        $1,001 to $15,000
        Domino's Pizza     Purchased     Oct 19 2005        $15,001 to $50,000

        Based on the timing it looks to me that Diana Cantor joined to Domino's Board and was then given an option to purchase DPZ stock... an option she and her husband exercised twice.

        •  Unlikely (1+ / 0-)
          Recommended by:
          War on Error

          The value of an option lies in there being no cash outlay and only upside.  Options would have been issued at the current price--meaning there was no incentive to exercise.

          The most likely reason is they bought stock because she was appointed to the board.

          If you're really interested, check Domino's SEC filings for the relevant period--they would disclose director compensation.

          "Well, I'm sure I'd feel much worse if I weren't under such heavy sedation..."--David St. Hubbins

          by Old Left Good Left on Fri Jan 27, 2012 at 05:26:54 PM PST

          [ Parent ]

    •  Correct, not IS, but ethically dubious (4+ / 0-)
      Recommended by:
      Mnemosyne, SadieSue, IreGyre, War on Error

      There is nothing implicitly there that says insider trading.  That said Domino's appointing Mrs. Cantor in all liklihood due to her husband is, and Eric subsequently buying shares the following year is at the very least a ethically dubious.  

      This is the very type of situation that proves blind trusts or limiting congressional members from owning equity or bonds in corporations while serving the public is necessary.  

      •  Wrong. (2+ / 0-)
        Recommended by:
        Huginn and Muninn, Cordyc

        There is nothing implicit or explicit that says insider trading. And you have your facts wrong - Diana Cantor was made a member of the Domino's board in October 2005. During the very same week as her appointment to the board, there are two stock purchases (Oct 12 and Oct 19). These are stock option purchases that are compensation for her work on the board.

        Now, there's a chance that Cantor helped Domino's in various ways - perhaps assisting them in meeting requirements so they could get their horseshit "Smart Slices" into public schools. Or perhaps with the diary industry. Who knows?

        Also - I'd like to see someone here explain how forcing politicians into having a Blind Trust would work in this case since the shares are compensation for Cantor's wife.

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