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 Broadcast.com, 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…
Thursday, November 20, 2008
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