OSTK ceo

http://www.thestreet.com/_googlen/newsanalysis/wallstreet/10314189.html

This really doesn['t have much to do w/Bryne, because it is related to PIPES> However, it is naked shorting, and the article is filled with some great bits.

Indictments are real, and they are serious. Now, because the story broke, they'll have to start naming the firms. I'm sure there are some sweaty palms out there now.

DOJ doesn't let you not admit or deny guilt. They spend the time to build the case, and then try and fry you.
 
You know, I actually knew the founder/leader of the "flying tigers".


I think the article said "improper" shorts, not "naked".

Nice try though.....


SteveD
 
You knew Claire Chenault? You must be older than dirt.

Improper is not only naked, but trading on inside information, and fraud. It also translates into RICO which even scares Mobsters.

Nice try though.
 
Quote from flytiger:

You knew Claire Chenault? You must be older than dirt.

Improper is not only naked, but trading on inside information, and fraud. It also translates into RICO which even scares Mobsters.

Nice try though.
More...

This article has NOTHING to do with naked shorting. It s about shorting some POS based upon inside information. That's a whole different breed of cat.

"Prosecutors charge Shane illegally profited from a series of short trades she made in shares of Compudyne by using inside nonpublic information about the $12 million PIPE. Unlike other investors, Shane, who invested in the PIPE, knew that shares of Compudyne would price at significant discount to the stock's then-market price of roughly $17."
 
They naked short the stock for two reasons. ONe, they know they are going to get shares later. Sometimes they cover, and sometimes not. Shane was not the big overseas player. She appears a copycat of shorts.

Two, lower the stock goes, the better deal the "investor" gets as all the variables in the document kick in.

It's been done since Reg S days at least. Remember, the Feds sometimes let a lot of stuff pass to nail you on one thing that sticks. That's why you see insider trading. Doesnt mean the other stuff didn't happen. It just is what they choose to prosecute.
 
Yep, Cramer has finally come out of his shell. He was pretty quiet for a while after the Subpoena toss. He just can't keep his mouth shut.

Patrick may well be the worst CEO in the history of finance. However, the SEC is being investigated, there are Federal Grand Jurys convening, we now know Hibernia was shorted (naked shorted- remember when it didn't exist?) and Morgan was the Prime, and maybe a few others. Today, Four Seasons, Croc, and Kos were up. I don't think Croc would have been up w/o PB being tireless in seeking the end of manipulation.

This story is far from over. OSTK may hit nine, or zero as Cramer says. We'll just see who's around to enjoy it.

PS. Matt Goldstein is on the Fed/HIbernia story at Street .com if you're looking for references. Don't take too much joy in Patrick's downfall. He's going to take a bunch of Wall Streeters with him.
 
Quote from BlueHorseshoe:

OSTK needs to raise capital - at least $100 mil - within the next 2-4 quarters, and the sooner the better. (Look at the balance sheet yourself - it is not rocket science.)

That is going to be dilutive to current shareholders. Were I to be looking tobuy, I'd wait to pick up the offering at a discount or wait 'til the offering had already concluded.

The need for cash also highlights Byrne's angst. Publicity will likely force him to discount the offering more than otherwise.
More...

The above post was from back in May. Sure 'nuff:

"After a Loss, the Chief of Overstock Reassesses
By FLOYD NORRIS
Published: November 7, 2006

WITH sales down and losses up, the Internet retailer Overstock.com warned yesterday that it might have to raise capital next year, and added that it did not expect to have its latest problems fixed before Christmas."

http://www.nytimes.com/2006/11/07/technology/07place.html
 
......and should things remain the same, they will naked short the shit out of this thing to replace the shares with stock from the company.

I'm hoping one of the DOJ probes hit, and there's enough of these guys in jail so if they have to raise cash, they can do it without manipulation.

IBD has a big article today with Cramer saying it's no big deal, naked shorting. Go to Vodiagroup.com and read how, in Galpern's opinion, the Prime Brokers are stealing 200mm a year from the Pension system, w/o counting neg rebates.

Patrick told me he has been told he's the most hated man on Wall St. They may bring his company down around his ankles. But I have been told when arrests happen, we will all recognize the defendants. It's all about making money, and then laundering it in a time of war. it's treason, seditious, and they should be shot.

Oddly, while they blow OSTK up, they are getting killed in KKD, MSO, NFLX, FFH......... So many more. Have fun.
 
You must log in or register to reply here.
Back
Top