To Everyone (except Mr. Darruda),
Mr. Darruda cannot spoil this Thread for me; I do not cede that power to him. I regard him a minor annoyance, a gnat in cyberspace.
I post some reflections on Mr. Darruda's possible strategies; my concern is that some of the good people on this Thread might otherwise get hurt.
Why is it that Mr. Darruda badmouths our Company, and announces that he will dump his shares at the market open on Monday? Two hypotheses:
Hypothesis #1: Mr. Darruda knows something negative about our Company that none of us know. He cares so very much about us, and about our fiscal well-being, that he wants to forewarn us of impending doom. Indeed, he cares so very, very much about us that he is willing to take a financial loss: If we heed his advice, and also sell on Monday, the price of the shares will be driven down, and he will realize less from the sale than he might have. (The rational investor, about to bail our, remains silent. The calculating but unscrupulous investor announces that he will buy, hoping to inflate the price before selling.)
Hypothesis #2: Mr. Darruda actually has confidence in the Company, or at least in the prospect of the stock's rising near-term. He seeks to acquire, or enlarge, a position at the lowest possible cost. He badmouths the Company, and announces that he will be dumping his shares on Monday, hoping to frighten some of the readers of the Thread into panic selling -- enriching himself at their expense.
I have discovered no evidence in support of Hypothesis #1. Hypothesis #2 is a matter of some concern.
And now, with a languid wave of the hand, I brush this gnat away . . ..
Jonathan |
