KLA-Tencor Admits Options Mispricing

| About: KLA-Tencor Corporation (KLAC)

Excerpt from today's One Page Annotated Wall Street Journal Summary (which you can get emailed to you every morning by signing up here):

KLA Finds Options-Dating Problem

  • Summary: Semiconductor manufacturing equipment firm KLA-Tencor said Friday that it would take a charge to correct the misdating of stock options granted to executives and employees. KLA-Tencor is already under investigation by Federal regulators and prosecutors. "Over the years, KLA has demonstrated a highly unusual pattern of option grants to top executives dated ahead of big run-ups in share price, often at low points."
  • Comment on related stocks/ETFs: KLA-Tencor (NASDAQ:KLAC) was one of the first companies to be investigated for option manipulation. Evidence that KLAC misdated options is compelling and openly available from SEC filings, so this adamission adds little new information and is therefore probably priced-in the stock. Jack Ciesielski discusses the Apple and Computer Associates options probes. As a footnote, the WSJ covergate of options mispricing has been outstanding ever since it initiated the investigation and broke the scandal. It's coverage like this that makes the WSJ required reading for every business executive and investor.