Thursday, November 20, 2008

True Contrarian

My co-blogger H.O.S.S. knows a thing or two about securities litigation, so I will await his insights, perhaps in comments, but in the interim I just want to comment about the irony of Mark Cuban’s legal troubles for selling some stock after allegedly receiving a confidential tip that it was about to tank. Isn’t that how Cuban got rich in the first place? He helped to build, which was a brilliant website for its time, and struck it rich twice, first through the IPO and then when Yahoo acquired 100% of the company shares in an all-stock acquisition in 1999. Cuban timed the transactions almost perfectly, as the NASDAQ crashed about one year after he sold out. Presumably as a savvy operator, he knew to sell high; he knew based on his inside knowledge that his business had nowhere to go but down, at least in valuation.

Live by the bear, die by the bear…

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