The "Bundesaufsichtsamt fuer Wertpapierhandel" (BaWe)is investigating the recent stock movements at the Frankfurt Neuer
Markt (New Market). They are investigating if Prior bought some stocks of the companies he recommended later, because BaWe might consider it insider trading, which is prohibited in Germany. So, the question is, did Prior buy stock of SCMM before he recommended it. If he did and BaWe is going to find out he will be in big trouble!
I looked at the Volume of shares traded in Frankfurt in the last 90 days. Volume was thin in SCMM before Prior's first recommendation, but now there is heavy volume in SCMM in Frankfurt! Some days there are more stocks traded in Frankfurt than in NASDAQ trading, with only one tenth of stock placed in Frankfurt! Are there insiders buying stock in Frankfurt?
I do not appreciate what Prior is doing, recommending this stock to all this unexperienced German investors. I think SCMM is overvalued, but I do not have a price target. There better should be some good news from the company in the next few weeks, or the stock will drop.
Prior is publishing a stock letter - I would not call him an investor. He thinks himself to be a very smart analyst.
Mr Prior advised to buy SCMM on monday at a level of about DM 100
($ 55), and the stock reacted quite promptly in New York.
I am of the opinion that SCMM is overvalued, but in comparison to other German stocks listed at the "Neuer Markt", SCMM is not overpriced. (e.g. LHSG)
Don't leave this message board. Check from time to time.Maybe I will need to contact you later. I think you know what I am talking about.
I got your message. Thank you.And congratulation again.Absolutly perfect execution yesterday. You are very smart.
I already wrote an email to the Neuer Markt requesting an investigation of Insider Trading, Manipulation, and Illegal activities by Mr. Prior and SCMM execs.
Will again call them & fax them a letter tomorrow.
Also, Called Nasdaq Regulators ... , and will also call SEC Regulators. Whenever something like this happening overseas, the best contact is SEC, and Neuer Markt regulators. NASDAQ has limited power on foreign trades.
FYI, you may write emails directly to Neuer Markt officials, and complain about Mr. Prior activities. The following is the lead:
Do you have questions concerning "Neuer Markt"?
Please do not hesitate to contact us:
Phone: +49-69-21 01-34 70
Fax: +49-69-21 01-34 71
Deutsche B�rse AG
Domestic Products Marketing
60313 Frankfurt am Main
Or contact us by e-mail:
100K traded on a 3 million float is HUGE volume. The other 10 million that you refer to is kept in the company coffers for bonuses etc. You'll find that's pretty common for new companies, not at all out of the ordinary.
Please post more specific info about the SEC investigation
Not so sure the buy the dip mentality will hold tomorrow. Last time around, October I believe, when INTC warned it fell 30
points before recovering for a 10 point loss. This time around however the market has been going great guns, no choppiness as
before the INTC warning last time, and FINALLY INTC is warning that revs will come 10% below last quarter, much worse than October.
Analysts are extrapolating this to mean 25% to 30% decline in earnings this quarter. Also this shortfall will not be resolved for 6-9
MONTHS. INTC is dead in the dust. Why does this matter for SCMM? Two reasons: the Asia problem is suddenly rearing its ugly head
with fuller force than we imagined and will thus touch all tech stocks with the ugly stick. Specters of a recession will have
many quaking in their boots. A crunch in capital will cripple debt-ridden companies without much cash, and will shrink PEs.
Secondly, no market, not even the German markets, can rise without the leadership of the DOW and NASDAQ. And with the leaders of the
American Markets (INTC, MSFT, IBM) taking it on the chin, I can't see where support will come for stocks like SCMM in the coming
months. It won't all happen tomorrow, but we should see the extent of the damage by mid-April.
That said I am a strong proponent of the buy the dip mentality but I'll be extra careful tomorrow before I go long. I do
think bears should not be too greedy but at the same time bulls have less reason than ever to believe others will buy the dip
after them. It will be interesting. I hope the German markets give us our first clue as to how far down the market will proceed.
The S & P futures are down 13 right now and may even finish LOCK LIMIT DOWN: translation DOW -120 at the open, NASDAQ -35.
... 3rd & final part of email to Neuer Markt Regulator:
2. SCMM announced they already filed to sell 3 million shares.
Usually, this type of announcement would drastically drops its price
because of price dilution ... but SMY at New Market keeps going up
because of Prior Manipulation & Inside Trading.
3. SCMM's Last Quarter earning was A BIG DISAPPOINTMENT? Discounting
the interest from their IPO money, which is around 1.4M$, they ONLY HAD
$0.05/share on PRODUCT SELLING. Expected EPS was $0.09. This
announcement would have dropped SCMM price immediately in normal
circumstances on NASDAQ ... but SMY at New Market keeps rising sharply
because of Mr. Prior's Inside Trading, and Price Manipulation.
4. SCMM's this quarter EPS is expected to be $0.06, vs. last Quarter
EPS=$0.09. This shows an earning shrink of 33%. Normally, this shrink in
earning would DROP the price tremendously. However, SCMM shows strong
rises (5% ~10% per day at the New Market) without good news. Mr. Prior
continues to manipulate the German public to pour in money. The Germans
can lose all their savings should the bubble bursted soon.
5. SCMM's products are propriety, and DO NOT HAVE A STANDARD. So, no
one is sure whether SCMM products will be adopted because of lack of
standard. Robert Schneider, chairman and managing director, said,
``There were major advances in Europe related to digital TV common
interface technology, especially in the U.K. market. SCM Microsystems is
involved in the relevant work groups to rapidly define digital standards
for these markets. Digital TV deployments in the U.K. are planned as
early as the second half of this year.'' Therefore, standard is not
On behalf of all investors and all those interested in fair & clean
trading, we are sincerely requesting New Market Regulator to investigate
inappropriate behavior on SMY by Mr. Prior or anyone else. We strongly
believe the New Market with more and more companies to come will enjoy
stronger and stronger participation of International companies.
Thank you very much.
Sincerely & kind regards,
I do not know German law but I have to believe you have no cause for action until the stock drops and drops substantially.
For the moment, it looks like a stock that did not receive adequate attention from the market until Mr. Prior started talking
about it. If it never drops back (below $40 perhaps, who knows?) you have no choice but to acknowledge Mr. Prior might possibly
know something you do not. Truth is stranger than fiction! Things like that do happen. Look at KIWT and IRSN for recent moves
like SCMM has made.