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Wednesday, August 16, 2006

Intuit Options Probe Shows No Fraud, But No One Cared Anyway

Intuit (INTU) has cleared its own options probe and said it has found no evidence of fraud. They even went back from 1997 to the present. It also said it will have no restatement. It sent these conclusions to the SEC and to the State of California.

What is interesting is that the stock closed up 1.3% at $31.53 on the day and shares are up and additional 1.5% at $32.01 after-hours. If you will look at Xilinx (XLNX) today up about 10% and Redback (RBAK) up yesterday about 8%, you will wonder why the shares aren't up more. After looking at the chart, you'll see why. The stock is right up close to its year-high, which is actually close to a 5-year high.

I was discussing this yesterday as trying to see which stocks may actually be completely cleared from the options probes, but this stock never looked like it was drastically impacted like others. So since the street wasn't overly worried about the options probe, traders must be thinking the street won't reward it as much as the others that had been battered.

We'll find out in the morning.

Jon C. Ogg
August 16, 2006

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