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COMING UP:Share Opener Variant 1

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Transcript

00:00:00
a mysterious bid to buy avon on thursday catapulted the cosmetics company stock up as much as twenty percent , only problem is it's not real david geffen is reuters editor in charge for u. s. markets there was a filing in the f. c. c. , that a company called p. t. g. , was looking to acquire avon and shares just shot up and then as soon as story people start to look at this a little bit more because in the actual filing they refer to themselves in the same paragraph mind you as both p. t. g. and t. p. g. , t. p. g. of course is a real private equity firm they of course have said they have nothing to do with this company , uh there are descriptions of the company that seem to be lifted from the wikipedia entry on t. p. g. , that's another red flag the filing contains a number of grammatical errors it says that the companies incorporated in the british indian ocean territory where no people live so this started to sort of smell pretty bad very very quickly %HESITATION we can't reach the suppose it companies address in london they list in a law firm that doesn't seem to exist in texas the firm doesn't seem to exist at all really an avon said it also has not gotten an offer , gavin says that while security exchange commission filings do carry some legitimacy yes he sees staff generally does not review filings and they are largely automated we spoke to a lawyer who used to work for the f. c. c. , and he said basically when you file you have to register first and you need to register with the name and email address , and he said unless you say your name is mickey mouse and you live on the moon it's not going to be reviewed it's going to go through and you know again because of the volume here this is how these kinds of things slip in while some traders said the filing quickly raise suspicion others may not have been so lucky one trait of more than two million shares was executed at the stocks peak of eight dollars each , by the time the market closed shares had come back down to reality