I KNEW IT !!! I KNEW IT !! Pfizer CEO dumps stock after reveiling COVID results !!

[uponit7771]

This is the 4th or 5th Big Pharma's C level have done this with their stock to later find out that the press releases were to vague and tilted towards too good of news !!

I KNEW there was some shady shit here, 90% effective for what?

https://markets.businessinsider.com/news/stocks/pfizer-ceo-sold-stock-day-covid-19-vaccine-results-unveiled-2020-11-1029790705

This is some bullshit, why in the world would someone pump and dump a stock when its vaccine is so promising.

I can't wait till the bastards in the White House are out and and these people are held accountable

[JudyM]

1. From the article

His stock sale was carried out through a routine Rule 10b5-1, a predetermined trading plan that allows company staff members to sell their stock in line with insider-trading laws. Bourla's sale was part of a plan adopted August 19, the filing showed.

Doesn’t seem nefarious.

[Roland99]

2. Not a big deal. the news release was at 6:45am. Markets don't open until 9:30am

not like he sold days before. he would have been better off waiting til the next morning at opening, to be honest!

[uponit7771]

4. This is worse seeing the announcement was timed, no ... this is going to the FEC. This is bad

Bottom line, there shouldn't have been any activity around that announcement ... they're stupid

[Budi]

3. But..but.. they said the stock dump was already scheduled & it was ...

...just coincidence that Pfizer was given the green light THE VERY DAY BEFORE THE STOCK DUMP.

Just an unforseen coincidence...really guys.

[Rebl2]

5. Agreed

This was no coincidence

[uponit7771]

6. RIGHT !!

[flamin lib]

7. I own Pfizer. The stock price has not changed in the last year. It is currently up .02%

from 8/19. It routinely bounces up and down a buck or two on a daily basis. I keep it because it pays a reliable dividend above the inflation rate. It didn't get a big bump after the press release.

Just calm down.

On the other hand International Paper that makes shipping boxes is up 10% in as many days. It also pays a nice dividend.

A gorilla with darts can pick stocks as well as most analysts.

[exboyfil]

12. I looked at the ticker

It did jump up tremendously. His sale price was even higher than the highest listed price that day ($36 to $42). It then went down to $38. If he was a decision maker on the announcement, then he optimized his profit. He sells the day before the announcement, it would $6 less. He sells a couple of days later, then it $4 less.

It all comes down to if the announcement was timed on his predetermined sell orders (also you might want to look at the other executives - they may have had sell orders on the same schedule).

[uponit7771]

14. +1

[flamin lib]

24. In the same time frame Proctor and Gamble went from$138 to $142.

T ROWE PRICE went from $138 to $140.

The entire market went into a mini dip the week before the election was called because of the uncertainty and futures began a rebound on Saturday with the Biden win being called and then the entire market went even higher on the announcement of a vaccine regardless of the sector; electronics, real estate and everything else.

My modest retirement account (self directed) went into the green for the first time since the March '20 crash that took it 10% into the red. A 15% swing in three days. How modest? Well short of buying a Ferrari or dating a 20 year old exotic dancer I can make mortgage payments and support a photography habit until I'm 95 or so.

You can't look at a single stock without looking at the trend in the entire market. I routinely take a dispersion from the account for daily living expenses so these sales are an everyday occurrence.

Don't look for conspiracy theories, there are enough of those going around.

[uponit7771]

31. 36 - 42 a share is nearly 20% pop, 138 - 142 isn't, either way their was going to be a big pop

... from the vague press release news touting 90% effective at whatever.

The CEO of Pfizer knew that or should have known the aforementioned and was in control of the timing of the vague press release.

This is bad, there's not too many ways to put it.

If they wanted to half ass look decent the announcement (variant in timing) wouldn't have come RIGHT before the set sale date ... just damn

[flamin lib]

33. It wasn't a set sale date. It's called a limit order.

The seller sets a sale price and the length of time the order will remain active. That time can be as short as one day or up to indefinite until canceled. As soon as the stock hits the sell price the sale is consummated. If the price continues to rise there is money left on the table as happened with the Pfizer sale.

It's automated, once the limit order is placed the seller doesn't see it again unless they cancel it prior to sale. It's routine. I do it sometimes, both as a profit taking and as a stop loss. Stop loss is when a stock is losing value and the seller anticipates it may rebound but if not sell it at some point before the loss is at a personal pain level. If the price doesn't fall low enough the sale is not consummated. I've done this as well, sometimes selling and sometimes not depending on limits set.

As for press releases, they are written for public consumption to be understood by lay people. Try reading and understanding an analyst's report. On a scale of 1-10 I'm probably a 4 on sophistication and that stuff is all Greek to me.

There is no conspiracy here. Insiders have to file a form 3, 4 or five with the SEC depending on the size and type of transaction before orders are placed. FDR put some real safeguards in place back in the day. Do people still cheat and commit crimes? Oh hell yeah and they get caught which is why we all suspect foul play. I just don't think this is one of those.

Last week I set a stop loss order and sold 110 shares of a falling stock. The sale was made on Friday. Over the weekend the election was projected and the vaccine announced. The stock I sold rebounded 20%. What a difference 24 hours can make.

[uponit7771]

36. The CEO controls the presser timing, there's no doubt some bullshit here. Even NPR admitted ...

... the reasoning Pfizer gave for the variant (important factor not what type of sell order it was) timing of the presser RIGHT before the set sell date of the stock which again ... the CEO controlled, sounded funny.

This is some bullshit no matter how many words or ways one wants to explain it.

The presser could've came ... AFTER ... the orders sell date, not RIGHT before it .. come on.

[flamin lib]

37. I give up.

If he had sold AFTER the press release, bogus or not, he would have sold at a HIGHER price. There is no conspiracy here.

You only sell BEFORE a press release is if the press release is bad news and you know the price will GO DOWN,NOT UP.

[uponit7771]

38. Please, do. Your position is wrongly focused. The CEO controlled the timing of the presser not the..

... sell of the stock so your focus on the sell order timing isn't relevant to what even NPR has picked up on.

Fact not in dispute: A CEO ***CAN*** time info release that could benefit them in relation to their stocks and it looks like Pfizer CEO did.

PERIOD.

The FEC doesn't just look at buy and sell timing to start investigations.

[BlueLucy]

8. Good question!

Why dump a promising stock? Something is not right here.

[Budi]

9. And they wonder why people are so suspicious 🙄

[uponit7771]

15. RIGHT !!

[flamin lib]

25. See #24. nt

[Hoyt]

10. I'm just glad he didn't announce that a day or two before election.

There are severe penalties for over-selling such information. If the vaccine is anywhere near as effective as they say and priced at under $20 an injection (two required), good for them.

[uponit7771]

16. They oversold the information too it looks like, 90% effective at what? It was done in a press

... release like the last 4 big pharm C level sells that ended up not to be up to snuff once the double blinds came out.

This was not a good thing for the country

[brush]

11. This is not as nefarious as some think. Many people who buy...

stocks have buy/sell dates established to lock in a profit or minimize losses. The ceo set a date back in August to automatically sell the stork once it reached a certain price. Back in August.

It reached that price so the sell buy order went into effect before the end of the trading day so it really left a lot of money on the table.

It's not like the ceo was watching the price all day and called his broker to sell when the price was highest.

We kinda have to thank him for not announcing this before the election as trump very likely would've won. Jr. trump accused him of waiting until after the election to break the news of the vaccine. I'm pretty sure he would've done that if was a trumper.

[exboyfil]

13. But did that sell order influence when the announcement was made?

[brush]

17. The automatic sell order was set in August, a couple of months ago.

Do you realize the news of a successful vaccine was released after the election.

If it was before trump would've probably won because he's been promising a vaccine for months.

We maybe should be thankful the news was release after the election. I think the ceo knew what he was doing, and thank God.

[exboyfil]

20. But he could have waited two more days

after the sell order was already executed but didn't.

[brush]

22. What are you complaining about? He waited until after the election.

Again, otherwise trump probably would've won.

[flamin lib]

27. No, he couldn't wait. It was a limit order set months in advance.

I do this myself. I set an expected price, put a sell order in and set the date the sale order ends. That date can be a day order or unlimited until cancel.

The only way he could wait would be to watch the stock hourly and place a sell order manually.

Nobody does that except day traders which can be found in the dictionary under "broke".

[uponit7771]

28. You don't allow or call major announcements out RIGHT BEFORE your set sell date though. I don't

... see how this is getting missed, the announcement was the variant not the sell.

No announcement no stock pop RIGHT before set sale date, timing is everything here

[flamin lib]

34. See reply #33.

The sale isn't set by date unless it's to be closed before year or quarter end for tax or other purpose in which case the date is independent of any announcement. Limit orders are usually set by price with some end date if the price isn't met. Once the price is met the sale is made even if the price continues to rise. Reply #33 gives a bit more detail.

I just don't see a conspiracy here.

[uponit7771]

35. The CEO controls the announcement timing, this announcement COULD have been done AFTER the set

... sell date.

It wasn't

It was done RIGHT BEFORE the set sell date with an ambiguous at best presser

[uponit7771]

21. It could've been release ALSO after the set sell date, with or without an election the variant is

... the announcement and when it was done.

Hours before a set sell, no ... this is some text book bullshit

[brush]

23. I'm not seeing it. The news came out AFTER THE ELECTION.

What's the complaint? Before the election and trump would've won.

[uponit7771]

29. election isn't relevant timing on announcement is, the CEO controlled the timing on announcement

... even if sell date was set

[brush]

30. It's extremely relevant if you wanted Biden to win.

[uponit7771]

32. For a Biden win correct, for the purpose of this OP the timing related to the election wasn't

... relevant.

The timing related to the set sell date was.

Pfizer could've released the vague presser after the CEOs set sale date not right before it taking advantage of the known coming 20% pop.

[Budi]

18. That's the million dollar question that lends this move suspicion.

K & R

[uponit7771]

19. No, that's twice as bad because there was a set sell date with the timing of the announcement

Last edited Thu Nov 12, 2020, 02:29 AM - Edit history (1)

...as the variant the announcement coming ...AFTER... the set sell data would've been less shady but this was damn near hours before the sell time !!

and

The "press release" was the typical vague release tilted towards good news without any caveats that the double blinds show up.

Again, this is the 4th or 5th time big pharma C levels have done this.

Look at Remdisaver's (sp) press release .... it was a disgustingly overt pump and dump.

[ecstatic]

26. F*cking crooks

[flamin lib]

39. YOU KNEW IT!!!

I was wrong about the type of order, it was not a limit order. It was a planed timed order executed as part of CEO Bourla's compensation plan.

Link to the execution order for the sale.

http://d18rn0p25nwr6d.cloudfront.net/CIK-0000078003/57afef57-8280-4e7f-9b8c-78bb14852af9.pdf

Please note:

Explanation of Responses:
(1) This sale was effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on August 19, 2020.

Snip from Rule 10b5-1 definition:

What Is Rule 10b5-1?
Rule 10b5-1, established by the Securities and Exchange Commission (SEC) in 2000, allows insiders of publicly-traded corporations to set up a trading plan for selling stocks they own. It is a clarification of Rule 10b-5 (sometimes written as Rule 10b5), created under the Securities and Exchange Act of 1934, which is the primary vehicle for investigation of securities fraud.


Rule 10b5-1 permits major holders to sell a predetermined number of shares at a predetermined time. Many corporate executives use 10b5-1 plans to avoid accusations of insider trading.

Understanding Rule 10b5-1
Rule 10b5-1 allows company insiders to make predetermined trades while following insider trading laws and avoiding insider trading accusations. It is recommended that companies permit an executive to either adopt or amend a 10b5-1 plan when its executives are allowed to trade the securities in tandem with their insider trading policy. Rule 10b5-1 stops any insiders from changing or adopting a plan if they are in possession of material nonpublic information (MNPI).


There is a general overview and set planned guidelines for establishing a suitable Rule 10b5-1 plan.
It is not uncommon to see a major shareholder sell some of their shares at regular intervals. A director of XYZ Corporation, for example, may choose to sell 5,000 shares of stock on the second Wednesday of every month. To avoid conflict, Rule 10b5-1 plans must be established when the individual is unaware of any MNPI. These plans usually exist as a contract between the insider and their broker.

Link to definition of rule10b5-1: https://www.investopedia.com/terms/r/rule-10b5-1.asp

It was all done to the letter and intent of the law. In August CEO Bourla could not have known of research results to be announced 4 month in the future. Could he have manipulated the date of the press release? I don't know as such things are subject to many corporate considerations and members of the Board of Directors but if he did that intentionally the SEC has been provided by him with all the data needed to prosecute for insider trading.

On October 19 Bourla published an open letter with the timeline of product testing and reporting so the timing of the press release was no surprise: https://www.pfizer.com/news/hot-topics/an_open_letter_from_pfizer_chairman_and_ceo_albert_bourla

In October he might have had an idea of how testing was proceeding but he still couldn't have known what the final results would be as that data had not yet been compiled.

Once again, I see nothing nefarious here. If the SEC determines that CEO Bourla and any others manipulated the date of the press release for personal benefit they will be prosecuted using the very information they filed with the SEC. I don't anticipate that happening.