Comment Re:Markets dont care (Score 1) 106
I am not in agreement that its illegal. I can research a company and find something I think is negative about them and sell that information to a 3rd party who intends to short the stock. No one is accusing CTS labs of having material inside information about AMD. The information CTS has was independently discovered by them. If this was illegal every short equity operation (Muddy Waters, etc) would be shut down. The most troubling thing about this is the text of the Viceroy Research report. Saying a company is going to zero and is headed to bankruptcy, if they don't really believe that, could prove problematic, but no one gets in trouble for stuff like that anyway.
That being said, I think that shorting companies based on security concerns is a good way to lose money. There have been several people that have attempted this and it never ends well. On top of that Intel has had just as bad or worse issues with their management engine and no one outside of the nerds care.