Posted May 14, 2018
By Byron King
Symantec Mysteriously Lost $6 Billion Friday
Dear Rundown Reader,
Its rare that a 33% stock drop doesnt strong-arm the headlines.
But Symantecs nosedive Friday went mostly unnoticed.
When a stock drops this badly we have to talk about it.
Today, why Symantec took a nosedive Friday and what this means for you.
But first, a recent letter on Bitcoin:
The real problem with cryptos besides not having scale, is not having any limit on production (the same problem as fiat (paper or digital).
Perhaps thats true for some coins. However, with Bitcoin we know that there is and will only ever be 21 million tokens. Once that last token is mined thats it, forever.
Your Rundown for Monday, May 14, 2018
Symantecs Secret Audit Investigation Tanks Shares
Folks are imagining the worst regarding cybersecurity firm Symantec (NASDAQ: SYMC).
News that the companys internal audit committee has launched an investigation into the company rocked Wall Street and sent shares spiraling Friday.
By the end of the carnage SYMC shares were down 33%, as reported by CNNMoney.
CNBC notes this equates to the company losing a third of its value, or $6 billion, as reported by Forbes.
SYMC, the company behind LifeLock and Norton Antivirus, had performed well so far in 2018.
The company, bolstered by a strong cybersecurity sector even managed to stave off the February correction, unlike most stocks.
And last years string of cyber attacks created a nice surge in demand for cybersecurity solutions.
Our own investment expert Greg Guenthner notes hes high on cybersecurity stocks because the industry continues to miraculously outperform the Nasdaq Composite this year.
But the news of SYMCs internal investigation sent shares full Geronimo.
Yet, despite the incredible drop very few news outlets picked up the story.
Its rare when a major market occurrence like this goes unnoticed.
In fact, things happened so quickly that the short sellers on Wall Street missed the boat too. Forbes reporting that despite the news, very little short selling occurred Friday.
In truth, this is a moving story and theres going to be a lot more unfolding throughout the course of the week.
CNNMoney reporting that SYMC didn't provide details about the probe, besides stating in its earnings call Thursday they were conducting an investigation in connection with concerns raised by a former employee."
Eventually those details will emerge.
As it stands now it looks like SYMC is in hot water and speculation for the worst is running rampant.
Folks with positions should take note and act accordingly.
Well follow-up as more information is released.
Now, turning to the markets this morning...
Market Rundown for Mon., May 14
S&P 500 futures are up 4.45 at 2,733.
Oils up slightly to $70.75.
Golds down $1.60 to $1,319.
Bitcoin goes for $8,429 this morning, according to CoinDesk.
Well talk again on Tuesday.
For the Rundown,