Quote: I'm wondering why no one seemed too concerned about the fact that people here had wildly different takes on whether or not my scenarios constitute insider trading and that no conclusion was reached.
Really? Let me help, hypotheticals like this do not make any profit for us in this forum.
This topic is not really about what constitutes illegal insider trading. It's really a followup on Sklansky's proposal that fundamental analysts could make more money if they factored the market price into their calculations of intrinsic value. You see him alluding to that point when he says,
Quote: DS - The possibility that something along those lines is going on should be part of your calculations. Unless you are DesertCat.
although his DesertCat aside puzzles me unless it's sarcasm.
His idea is that there is likely to be a lot of information of this kind that is embedded in the market price and beyond the scope of the fundamental analyst's due diligence. Therefore, the FA must "guess" at how much of the difference between market price and FA-Value is due to information available to the market but not to the FA, and factor that guess into his calculation of intrinsic value. That is, unless the FA has special insight into the market price that allows him to apply Sklansky's fundamental theorem.
This Insider Trading topic is just Sklansky's way of providing some examples to support his proposal that we should look to his Fundamental Theorem of Investing to make more money in the market.