Hi NightOwl; The complaint I typed in parts of is the Miburg pleading. Or at least they're using the same plaintiffs, LOL.
Re: "At any rate damages won't reach the billions and billions dreamed of by class counsel."
This depends on how long people tend to hold stocks, and how long RMBS was at a high price. They say that the average share is held for 6 months. If that were the median length of time a share is held, the total losses would be at least half the $11 billion.
I should explain. RMBS was above $40 per share for more or less a year. In order for a share to not contribute to a loss of $40 - $10 per share, it would have to have never changed hands during that time. If the median share changes hand every 6 months, at least half the shares would have changed hands during that time. There are 100 million shares total, so half of them would be 50 million. That many shares would generate 50 million x $30 = $1.5 billion in damages. I'm guessing that actual damages will be something like twice that or so. Of course not everyone who responds to the class action lawyer letters chooses to be a member of the Class.
But if 50% of them did, that would mean $1.5 billion worth of damaged stock losers, and they would therefore get about 7 cents on the dollar if the insiders keep their cash, and maybe twice that if the insiders are emptied.
Re: "A very small minority would have held for the ride all the way back down. Certainly nobody reading this thread." BWAHAHAHAHAHA!!! That's a good one, LOL!!!
Basically, there are two kinds of losers. The ones in denial are hanging around here and predicting that the bus will rise again. The ones that aren't in denial are trying to avoid thinking about Rambus any more than they actually have to. In addition to those two sorts of losers, the ones who actually made money are (human nature being what it is) likely to hang around and tell us all about it.
Another example of a trader is Zeev Hed. He traded Rambus for both wins and losses. I don't know if a class action settlement would allow profits to people who were on the wrong side of short term trades when, overall, their trades were profitable. Any idea?
-- Carl |
