Obama The Trader

The Obama Portfolio Wealth Daily.

On February 22, 2005, Barack Obama, a U.S. Senator at the time, placed a trade on a tiny biotechnology company out of Oregon. The biotech company's name is AVI Biopharma.

Records show that Obama purchased tiny AVI Biopharma just above $2 a share.

AVI Biopharma is a biotech that's been around for years. It develops drugs intended for the use to treat infectious diseases... some of which the Department of Homeland Security have deemed "bioterrorism" viruses like West Nile, Dengue fever, SARS and Ebola.

I know the company very well. I have played golf with former AVI CEO Dennis Burger in Sun Valley, Idaho. And Dennis gave a presentation at my biotech conference in August 2000.

But even though the company was founded in 1980, it has never successfully brought a drug to market.

25 years in business. 0 drugs on market.

So why did Obama buy it?

Maybe he knew something 99.9% of investors didn't...

You see, 8 months after Obama bought the stock, the company was awarded a $28 million contract from the federal government to research treatments against biological warfare or a bioterrorism attack.

AVI Biopharma spiked in price... and days after the announcement, Obama sold his shares and booked a 73% profit.

Not bad for a community activist from Chi-town, right?

Sure, but Obama understood one of the most fundamental trading strategies on the street: Buy the rumor, sell the news.

Well, what were the rumors when he bought the stock?

Folks this is not the only trade this shrewd stock-picker made.

Less than two months after ascending to the U.S. Senate, Barack Obama bought more than $50,000 worth of stock in two speculative companies whose major investors included some of his biggest political donors.

One of the companies was a biotech concern that was starting to develop a drug to treat avian flu. In March 2005, two weeks after buying about $5,000 of its shares, Obama took the lead in a legislative push for more federal spending to battle the disease.

The most recent financial disclosure form for Obama (D-Ill.) also shows that he bought more than $50,000 in stock in a satellite communications business whose principal backers include four friends and donors who had raised more than $150,000 for his political committees.

Obama bought speculative stocks favored by donors
- Chicago Tribune

But Obama's 2005 trades raise questions in that Skyterra Communications and AVI Biopharma are far more speculative and uncommon stocks than those blue-chip staples. They both have much smaller market caps -- less than $700 million -- and lower trading volumes. While there's no evidence that Obama had a role in the contracts for the companies, given his other investments, it seems an unlikely coincidence that the senator would be familiar with either company except through his work as a legislator.

Picking Apart Obama's Stock Portfolio - The Street.com

In 2005, Skyterra was viewed by Wall Street as a way to speculate in the public markets on the fortunes of MSV, which provides testimony and white papers to Congress about the value of satellite communications to the U.S. military and the Department of Homeland Security.

Obama's purchase came right around the time that MSV received approval from the Federal Communications Commission to construct a nationwide wireless network with both satellite and terrestrial components.

Impeccable timing huh?

Phony media tried to whitewash this story by pointing out that Obama lost money on Skyterra trade. it turns out Obama demonstrated another perfect timing:

Still, the sale was timely because Skyterra shares then dropped off precipitously in early 2006 after a partnership with a major phone carrier never materialized.

What to make of this?

While Obama ultimately lost money on his stock trades, these two moves do raise the question of whether there are ethical issues that should have restrained the senator from investing in shares of such unusual companies at a time when they were benefiting from federal funding.

Who knew? The Community Organizer is actually a shrewd stock picker... Wow!

No wonder our socialist rulers think all money is easy money, to be redistributed on a whim. For them, it is easy.

Barack Obama, Capitalist

One of my friends pushes the following theory:

Almost all rich liberals in this country became rich the easy way. Some are either trust fund kids or gold diggers. Some are in the entertainment industry where they make millions of dollars thanks to their good looks and acting / singing talent. Some are corrupt politicians or bureaucrats. That's why they are insecure. They themselves think that they don't deserve that much money. They also think whoever makes a lot of money does not deserve it either. They think everyone gets rich the way they did. They do not have a sense of hard working Americans building their businesses working 18 hour days providing value for other people and getting rich in the process. They just don't understand it!

Well... I am not so sure. It maybe true to a certain extent for the celebrity crowd but I think the commies who aspire to be tyrants and control everyone's lives are essentially corrupt people who would take advantage of anything that will enrich and empower themselves. They do not have a moral compass. They are in it for themselves.