Do CEOs lie to boost their stock????

[mahram]

a bigger problem is when ceo's are inept or just dont have a clue whats happening and just saying random things. You see it all the time.

Quote from BlueHorseshoe:

I know ... its a ridiculous question - we all know they do. I wanted to draw contrast with another ridiculous thread on this board "Do reporters front-run hedgies?" Perhaps only in contrast is the ridiculous nature of the other thread apparent. Some comments below:

1. The other OP has it backwards - HFs front-run reporters, and that is a good thing. Otherwise there would be no incentive to get alternate views out into the market - views alternate to CEO's dishonest or delusional propaganda.

2. HFs that identify dishonest or incompetent CEOs with overpriced stock do not have the bully pulpit CEOs enjoy. CEOs are on their quarterly conference calls, issuing press releases, attending investor conferences, spewing their utter nonsense, all in the effort to boost their compensation by raping investors. Who is more honest, a CEO who runs his own propaganda show, or a HF manager who works to get out an alternate view via third-party, professional reporters??

Here is what Buffett said of short-sellers: "Its a tough way to make a living." A HF manager's greatest asset, and only real hope, is the incompetence and dishonesty of a corporate CEO. A CEO of a terrible business, IF HE IS HONEST with his shareholders, would never be targetted by shorts.

Let's not allow ET to be used as a bully pulpit for dishonest and incompetent CEOs, and their acolytes. Perhaps we begin to use this thread to catalogue lies by CEOS.

 

[Anaconda]

Quote from mahram:

a bigger problem is when ceo's are inept or just dont have a clue whats happening and just saying random things. You see it all the time.

No, it just seems that way. The fact that you see it all the time should be a clue that it's just an act.

They aren't inept, they just don't give shit about anything or anyone else besides themselves, their cronies and the money. That's all.

 

[Specterx]

Quote from seauouch:

I had some money in a tech stock ( sorry forget which one now its been 10 years ) & the price of the stock dropped 20% in 1 day on no news. The CEO held a press conference the next day & told the bagholders not to worry, everything was fine, earnings were right on track etc.

Well earnings came out & instead of a .48 cent profit they showed a 2.00+ loss.

Turns out they lost a major contract & the insiders & the select few funds they let in on it were selling hand over fist while telling bagholders everything was a-ok. I learned the hard way to never ever trust what the ceo says.

Makes you wonder whether insider trading should be banned. After all, everything the insiders do shows up on the tape. They can't sell a gazillion shares without tipping off price watchers.

 

[stock777]

Quote from Specterx:

Makes you wonder whether insider trading should be banned. After all, everything the insiders do shows up on the tape. They can't sell a gazillion shares without tipping off price watchers.

Seems Mozillo got out of plenty of shares when he saw his ponzi scheme failing.

 

[Lucrum]

"Do CEOs lie to boost their stock????"

Can you make a shoe smell?

Quote from Specterx:

Makes you wonder whether insider trading should be banned. After all, everything the insiders do shows up on the tape. They can't sell a gazillion shares without tipping off price watchers.

I can't remember the whole history of insider trading regulations but I believe it's a relatively new concept.

And I'm with you, sometimes I think it would be better to stop wasting so much money and effort trying to stop and regulate an activity that one way or the other IS going to happen anyway.

 

[codetroll]

The answer: No.

They typically don't lie, I'd say 99% or more don't lie to boost the stock performance. They value staying free and their pay check, jail isn't a very nice place.

BUT**, they may or may not leave out information that would "reflect negatively" on the stock.

The conference call is a classic example if you get a good CFO or CEO that can dodge questions and "be unsure" about certain things. Quite funny sometimes almost to the point of ridiculously hilarious.

-troll