Intel Corporation (INTC) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Intel Corporation (INTC)

INTC 50.59

+4.9%

Feb 6 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Fred Fahmy who wrote (3012)	8/21/1996 10:33:00 PM
From: Mark Brophy	of 186894

Fred: <<Why should it bother the funds?? Must funds are not managed by amatures. Only amatures automatically associate insider selling with time to bail.>> Most funds are run by amateurs. About 80% of the funds did worse than the S&P 500 last year, which is why index funds have gained so much popularity. A chimp from your local zoo that throws darts at the stock pages will outperform most amateur mutual fund managers. My favorite amateur fund manager story is from Netcom. They had a secondary offering earlier this year. Secondary offerings are offered to large purchasers such as funds, who wish to purchase large amounts of stock in a company without pushing up the price. The prospectus for the offering clearly stated that Netcom faced many risks, including losses for the foreseable future, and that the CEO was cashing out 1/3 of his shares for $60m (more than enough for a house in San Jose). The amateur fund managers quickly bought the offering, and the CEO was overjoyed that he got $71/share (it was trading at 60 when the prospectus for the offering was drafted). Today, about 6 months later, Netcom sells for about $18/share. The purchasers have no grounds for a lawsuit, since the company delineated all the risks and disclosed that many of the shares offered were from the CEO. He laughed all the way to the Silicon Valley Bank!

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next