Confused investors bid up shares of Nestor 1,900%
This company isn't Nest, the company Google just bought for $3.2 billion. But people sent the penny stock soaring anyway.
But that's not to be confused with Nest -- the high-tech thermostat and smoke detector company founded by former iPod genius Tony Fadell and sold to Google (GOOG) for a cool $3.2 billion earlier this week.
Don't tell that to savvy investors! Nestor Inc. (the penny stock) was up 1,900 percent Tuesday on the news as investors confused the two companies.
There was actually pretty decent volume here too, suggesting that a good amount of people made the mistake or are trying to anticipate that people might. The surge was first noted by Kid Dynamite's blog.
Bloomberg's Matt Levine asks the natural follow-up question.
It sounds like a scene out of "The Wolf of Wall Street."
Reuters' Felix Salmon and CNBC's John Carney both argued on Twitter that, yes, that would in fact be insider trading. If you made material gains via non-public information of the deal, that's insider trading folks!
But we're probably not likely to see this taken to court.
And, as Salmon noted, you might as well just wait for the deal to have been announced, since you'd make as much money the legal way.
Nest shares were flat Wednesday.
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