El Paso Trading Tied to Diamondback & Insider Trading (EP)

Posted in General 
November 22nd, 2010

El Paso Corporation (NYSE: EP) is down today, but not only news of its own.  It turns out the the widely reported ongoing insider trading probe is to blame.  A hedge fund called Diamondback Capital has El Paso as a key holding.  Shares saw a rapid drop today after 12 EST when word came out the Diamondback offices had been ‘visited’ in this large ongoing insider trading probe.  The bet is that even being involved in this inquiry whether truly involved or even being named could create redemptions in the fund that will require its top holdings to be sold off.

At 2:10 PM EST El Paso shares are down 2.14% at $13.74 on more than 8.1 million shares.  Average volume is 6.5 million shares and the 52-week range is $8.94 to $14.06. The 12+ million shares is worth close to $150 million, a fraction of the $9.7 billion market cap.


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