Hi Scumbria; Yes, Dave B was an insider on INAP, pumped it, wanted to sell it, but kept secret his motivation for holding onto the shares. The truly funny part about all this is that in spite of having shares at the insider price, and despite being buddies with the founder, he stupidly managed to end up with a losing position.
If the guy can't make money with those kind of advantages, you wonder why anyone would listen to his advice on RMBS.
Hey Dave B; If you were ethical here is how you could have been a little different on this:
(1) Since you're intimates with the founder, you could have refrained from posting about it, especially in a public place. Insiders have motivations that are different from that of regular investors.
(2) When you wanted to sell the stock (at $40, $80, and $10), you could have said that, instead of saying that you were "holding". Maybe people were relying on your judgement while they held, but you didn't tell them your true feelings, or your true situation with the stock.
(3) When the trade turned out badly (at least so far), you could have taken responsiblity for the loser instead of blaming it on your wife's judgement. When you said you were holding, you didn't credit that to your wife, why give her the blame now?
(4) Now that you're a rich boy, you can say that the lost money doesn't matter to you. What are you trying to do here, advertise yourself as a deep pockets for the lawyers?
No, at heart you're an ethically challenged insider, though it does seem that you have realized at least a small part of what you did wrong.
-- Carl |
