Want to be notified when a new article is posted? Entere your email here.

Friday, July 07, 2006

Mark Cuban's Sharesleuth.com Is Up And Running

Back in June, Dallas Mavericks owner Mark Cuban announced that he was planning a venture that will combine investigative journalism and investing. According to this Businessweek Online story:
Searchsleuth.com will focus on investigative journalism, seeking to find unsavory companies and share the tales behind their malfeasance, Carey says. The stories will take an "anti-fraud, pro-investor” point of view and will likely steer away from the '“he-said, she-said'” approach of much contemporary journalism."
Apparently, Cuban will attempt to profit from the information he uncovers by shorting the stocks prior to unveiling the stories. At the time of Cuban's announcement, there were a lot of questions as to whether this approach was legal or amounted to insider trading (for a law professor's analysis of the issue, see Larry Ribstein's TCS story here).

To make a long story short (no pun intended), Cuban's new site is up and running and has it's first post. No investigative journalism yet (it's more of a generic piece that doesn't mention any specific companies), but I'll keep an eye on the site.

From an academic standpoint, it's an interesting idea, and could raise some interesting issues. First off, I'm curious to see what the site will add over and above the information already in Footnoted.org. Second, I wonder if Cuban will disclose his positions AND the dates he took them (highly unlikely, but I can hope, can't I?). This would make for a good case study on the actual payoff to information gathering, and would add a lot of credibility to the site. Finally, I wonder what effect the publishing of the stories will have on the trading volume (and bid-ask spreads) in the stocks covered.

Stay tuned.

Updated 8/8: Welcome to all the folks who came over from the the Yahoo! Finance Message Boards. Feel free to look around - the blog ranges over a pretty broad variety of topics. You can get back to the main page by clicking on the logo at the top, and archives (and buttons to add the blog's RSS feed to your feed reader) are listed on the right sidebar.

2 comments:

Anonymous said...

Thanks οn your mаrvelouѕ poѕtіng!
Ӏ actuаlly enјoyed гeading it,
you coulԁ be a great authοr.I will rеmembеr tο bοοkmark yοur blog and defіnitely will сοme back
somedаy. I want to encouгage you continue youг gгeat
writing, hаve a nice day! green coffee Extract with svetol - directory.italkwebs.com - Green coffee au

Heгe is my homepаge :: pure green coffee bean reviews dr oz

Anonymous said...

I constantly spent my half an hour to read this webpage's content all
the time along with a cup of coffee.