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Msg  7020 of 44297  at  4/22/2007 6:55:37 PM  by

Hannibal


Securities Laws

_____I'm curious. Does anyone else here actually believe Tam's claim that when I knew about a big Overstock story coming in the press I would go on a message board to post, "Big story breaking next 24 hours"? Anyone? Bueller?

_____Sorry to disappoint, Tam, but Mr. Alsin does not keep me advised of his publication schedule. I'm pretty sure I was as surprised as anyone else when his story ran, and while from my few interactions with him I hold him in very high regard, I don't think that I would have anticipated one of his columns as a "big story" in any case. I recall that long ago I disclosed what it was that I was referring to, right Tam? For a hobbyist you seem to have an encyclopedic knowledge of everything I have ever said or written, so do share with others.

_____As far as "valuation" goes: the way some fellows avoid the arguments with rote-like predictability is one of the many things that suggest they are on script. On the off-chance that someone else were inclined to take this point seriously, I will answer it again. The valuation for any stock should be whatever the market says, not "whatever the market says, and one side gets to print up untold quantities of fake shares with which to flood the market for indefinite periods." Now is that distinction really so arcane?

_____Lastly, I actually care a great deal about the securities law. In fact, what drives me to act in a fashion some think unconventional is that I believe the "conventions" mask widespread disregard for securities laws within the Elite and to the detriment of the retail investor.
_____For example, the "conventional" IPO (circa 2000, anyway) built up demand (much of it misstated or insincere) for shares so as to guarantee a pop once trading began, then allocated to crony hedge funds those IPO shares (with their latent guaranteed profit). Those hedge funds reaped megaprofits at the expense of retail investors, and then paid 30% - 50% kick-backs to the bankers in the form of excess trading commissions. That is the "convention" that I disregarded in order to go with Hambrecht's Dutch Auction.
_____For another example, consider Reg FD ("Full Disclosure"). I love FD. I think it was terrible that companies could tell Wall Street one thing while keeping the public in the dark, creating an information asymmetry that the traders could exploit. Just more guaranteed profit coming out of the American public's wallet. However, my sense of things (back when I spent some time around Wall Street) was very much that when the door closed, people still expected the inside scoop. Simply from the way people asked me questions, and met my "Reg FD" reminders with vibes of shock and disbelief (most seemed to think at first that I was kidding), I got the feeling that the "convention" was to leave Reg FD at the hedge fund door. I ignore that convention (if convention it be) and instead openly discuss the company only on public conference calls, public letters, and (to a small extent) on IV, our auction boards, and (until it got captured) Fool. Some squawk about how "unconventional" this is (which I don't understand), but if it is, that is because "the convention" stinks. If all management discussions took place on public message boards and public conference calls we'd have a cleaner market for it (as long as they were stripped of cloggers, of course).


____One man's thoughts.

Warm regards,
Even to the blackguards,
PB

PS In case you missed it, here was an interesting article (but not a "big story", Tam):
http://www.law.com/jsp/ihc/PubArticleIHC.jsp?id=1176282249576

PPS Now here was a "big story":
http://www.bloomberg.com/avp/avp.htm?T=default&clipSRC=mms://media2.bloomberg.com/cache/vIrfhgQPAJ1s.asf


PPPS Does anyone know how to make indents with doing this? "_________" Please share.


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Recs: 23     Views: 1647
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Replies
Msg # Subject Author Recs Date Posted
7022 Re: Securities Laws Maldoror 0 4/22/2007 9:23:10 PM
7023 Re: Securities Laws tamoshanter 0 4/22/2007 10:47:40 PM


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