@scottalanmiller said in Major Intel CPU vulnerability:
Pretty cut and dry insider trading, I wonder how much of hiding this flaw from the public was solely to hide the insider trading?
" To avoid charges of trading on insider knowledge, executives often put in place plans that automatically sell a portion of their stock holdings or exercise some of their options on a predetermined schedule, typically referred to as Rule 10b5-1(c) trading plans. According to an SEC filing, the holdings that Krzanich sold in November — 245,743 shares of stock he owned outright and 644,135 shares he got from exercising his options — were divested under just such a trading plan.
But Krzanich put that plan in place only on October 30, according to the filing. "
The plan was created in 2015 per Bloomberg.
You can also see the history of transactions here.
Since the plan was set up, Krzanich has had a common trading pattern. In February, he gets his equity payout under Intel’s performance-based incentive plan. For fiscal years 2015, 2016 and 2017, he received 89,581, 87,061 and 278,868 shares, respectively. Then in the last quarter of each of those years, he makes sales that are proportionate to the awards he got. In the last quarter of 2015, he sold 70,000 and in 2016 he sold more than 50,000. And this year, the sale was much larger in light of the large payout he got in February.
Looks like he traded on 11/29.
Market Close was at $43.95 that day. Market Close today is $44.74 today. I expect Intel shares to go up as people realize public clouds need to buy 20% more compute this quarter (and it's too late to qualify to move those workloads to ARM/AMD systems, nor can AMD/GF handle an order that large).
While I know insider trading doesn't require you actually make money off of it, I'd argue he missed out on gains by not waiting to sell until now. Intel is clearly fine, and while this is painful for a lot of people who have to go do patching, the market isn't punishing Intel in any serious way.
Note: the stock has doubled under Brian as CEO. This design decision was made in 1995 (well technically earlier given how long it takes to get something out the door).
Equifax is different in that their trades were NOT scheduled. Those yahoos are going to jail or to pay a token fine and promise not to do it again.
Also, EqualFax has only recovered 1/2 of its losses from the breach.
Full SEC yadayadayada disclaimer, I hold no Intel, but am considering a long position in the near future.
https://www.bloomberg.com/news/articles/2018-01-04/intel-ceo-krzanich-slashed-stock-holdings-at-end-of-last-year