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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?


To: Dale Baker who wrote (10670)7/8/1999 10:35:00 AM
From: Peter V  Read Replies (1) | Respond to of 18998
 
Why should any company, on the Internet or elsewhere, have the right or obligation to allow people to do actionable things under the cloak of anonymity? If an anonymous poster here libels or slanders you in a post, do you believe you should not have the right to pursue them in court?

I believe in anonymity because I have seen people's lives turned upside down when their identities are revealed. Harassing calls to their employer, to their family, etc. And because anonymity is the premise of SI. SI instituted this premise, not me.

And you are missing the point. I'm not saying that you can't be sued for your actions here, I'm saying that unless a suit has merit and a court reviews it and orders SI to turn over the identity of a poster here, it should not be so easy to discover a poster's true identity. You ought to be able to challenge that person's investigation to see whether it has merit.

And you are pretty anonymous yourself. Dale Baker doesn't tell me whether you are a man or woman, where you live, how old you are, what you do for a living, etc. (I haven't checked your profile to see if it's there). THere could be hundreds of Dale Baker's out there. But do you really want some (or all) of the posters here to know where you live? I'm sure you can think of a few who you would not want to know. And I think that's especially important for the women here (call me sexist if you like, but violence against women does exist, and I don't know if the posters here are capable of such things or not, but I'd rather not chance it).

I would think you would want some control over the personal information you give to SI when a private individual wants to know who you are and where you live without wanting you to know about it first.



To: Dale Baker who wrote (10670)7/8/1999 4:08:00 PM
From: Ronald Ashkenazy  Read Replies (3) | Respond to of 18998
 
>>>>SI would be a much nicer place if anonymity weren't permitted at all. I'm not saying addresses or phone numbers should be available, but people expect (and do) way too much because they think they can get away with anything.<<<<<

Dale, I couldn't agree with you more. I grew up in Texas where a man's word used to be his bond. Million dollar deals were completed with just a handshake. A person would sooner lose his fortune than lose someone's trust or their “good name”. Trust took years to create and seconds to erase. It was something that was hard-earned, garnered and coveted . Once it was gone, decades, if not a lifetime, would pass before those lofty heights could ever be resurrected. In the meantime, alienation, scorn and derision were all that was left as that person's closest companions. People in America used to have “the courage of their convictions” and proudly always signed with real names. Electronic communications has given us much, but at what price? Now we have people routinely hiding behind the cloak of anonymity. When accountability is tossed from the mix, we are left to wade through the present murk of innuendo, touting, manipulation and an overall lack of cordiality. Don't get me wrong, I have nothing against harsh words being spoken. I enjoy frank discussions as much as the next guy. But use THAT weapon wisely and prodigiously AND attach a real name to your statements so people may forever judge you on your credibility and accuracy. Imagine if the Declaration of Independence had been signed by “DownBigAgain”, “HaveHunchBuyLunch”, etc. instead of Thomas Jefferson, Benjamin Franklin et al. Somehow the awesome courage and inspiration of that document would have been forever tarnished.

I do realize that the issue is not black and white. I do understand why otherwise honest, responsible and proud people are hesitant to give up the cloak of anonymity in this age of lawlessness where criminal justice, short of most high profile murder prosecutions, is often a charade. Trials often just re-persecute the victim thanks to a desertion of common sense from the courts. Harassment, stalking or worse are simply back-burner issues. And outrage has been officially deleted from the dictionary. But courage has never been easy and trust has never been negotiable.

Compared to Yahoo (where getting caught lying just means that it is time to change your alias), SI is a haven of truth. But anonymity degrades the intrinsic value and accountability of these boards and it all just frankly sickens me.

They say sunlight is the best disinfectant. Too many people here and elsewhere choose to live in the shadows where pride and honor never pay a visit. They may laugh on the way to the bank but the walk home can be mighty lonesome.

Ronald Ashkenazy

With deep respects to:
Roger Sherman, Samuel Huntington, William Williams, Oliver Wolcott, Caesar Rodney, George Read, Thomas McKean, Button Gwinnett, Lyman Hall, George Walton, Samuel Chase, William Paca, Thomas Stone, Charles Carroll of Carrollton, John Hancock, Samual Adams, John Adams, Robert Treat Paine, Elbridge Gerry, Josiah Bartlett, William Whipple, Matthew Thornton, Richard Stockton, John Witherspoon, Francis Hopkinson, John Hart, Abraham Clark, William Floyd, Philip Livingston, Francis Lewis, Lewis Morris, William Hooper, Joseph Hewes, John Penn, Robert Morris, Benjamin Rush, Benjamin Franklin, John Morton, George Clymer, James Smith, George Taylor, James Wilson, George Ross, Stephen Hopkins, William Ellery, Edward Rutledge, Thomas Heyward Jr., Thomas Lynch, Jr., Arthur Middleton, George Wythe, Richard Henry Lee, Thomas Jefferson, Benjamin Harrison, Thomas Nelson, Jr., Francis Lightfoot Lee, and Carter Braxton. None of them ever hid behind an alias.




To: Dale Baker who wrote (10670)7/9/1999 1:05:00 PM
From: blankmind  Read Replies (1) | Respond to of 18998
 
Individuals Caught in Crossfire
Of Duo's Battle on Chromatics
By KAREN DAMATO
Staff Reporter of THE WALL STREET JOURNAL

Florida stockbroker Alan "Skip" Davidson and his wife recently fled their home for five days to avoid a barrage of obscenity-laced phone calls -- including death threats -- that he says was unleashed by an adversary who goes by the moniker "Mr. Pink."

It's just one chapter in an odd and disturbing tale of small-stock investing in the Internet era.

"Mr. Pink" and Mr. Davidson, using his screen name "Skipard," have been slugging it out for months on Internet message boards dedicated to the stock of obscure Chromatics Color Sciences International Inc. Mr. Davidson, 56 years old, is a big stockholder and head-over-heels fan of the money-losing New York company, which is trying to market a device to diagnose jaundice in newborns by analyzing their skin color. "Mr. Pink," a Chromatics critic, describes himself as a hedge-fund manager who has sold shares short in a bet that the price will fall.

Caught in the crossfire: lots of individual investors wondering which -- if any -- Internet guru to believe. "Mr. Pink" and his fans have been the big winners lately, as Chromatics shares have collapsed. The stock closed at $5.50 Thursday in Nasdaq SmallCap Market trading, after closing as high as $17 on April 30.

See excerpts from selected posts on the Chromatics message board of Silicon Investor

Battling in the apparent anonymity of cyberspace, "Skipard" has slammed "Mr. Pink" as "pond scum" and a "slimeball." "Mr. Pink" labeled Mr. Davidson "a loser" who "led your followers to ruin."

Then "Mr. Pink" escalated the feuding by posting Mr. Davidson's full name, employer and address on the Internet. "Anyone upset about losing millions on CCSI should call Skip Davidson at [his home phone number]. Or send him a package with a gift to [his full home address]," advised a June 22 posting on Yahoo! Finance. CCSI is Chromatics' stock symbol.

"I am a big boy when it comes to winning and losing" money in the stock market, says Mr. Davidson, who works from his home as a broker for First New York Securities. But faced with personal threats, he says, "I'm afraid." While many of his longtime followers haven't denounced him, he says, lots of other unhappy Chromatics investors "now have someone to blame."

Want to receive an e-mail alert when Heard on the Net columns are published? See details on how to subscribe.

The Chromatics message boards are evidence that some of the virtual communities spawned by the Internet are downright ugly places, driven by hostility and awash in adolescent name-calling. "Skipard" and "Mr. Pink" are like the captains of two teams engaged in a frenzied brawl.

The on-line war of words over Chromatics also highlights the risks for investors at the dangerous juncture of small-stock investing and the Internet: This new medium has made it far easier for adventurous stock pickers to compare notes. But it also helps wrongdoers spread misinformation to pump up the price of a thinly traded stock they hold -- or drive down one they have sold short.

Both sides in the Internet debate on Chromatics have leveled allegations of market manipulation against the other, and a lawyer for Chromatics says U.S. Securities and Exchange Commission staffers "said they would follow up" on the company's complaints about possible trading irregularities by short-sellers. (Short-sellers sell borrowed shares of a company they bet is overpriced, hoping to make a profit by buying cheaper shares later on.) An SEC spokesman said the agency doesn't comment on pending investigations.

Wounded Lion (Barrons, July 6)

Dreyfus Growth Is Hurt by Lengthy Reorganization (July 1)

Short Seller Takes Potshot at Dreyfus Fund Manager (June 10)

The squabbling over Chromatics hit the headlines in early June -- with dire consequences for the stock -- when high-profile New York short-seller Manuel Asensio issued several statements accusing the company of overstating the capability of and potential market for its jaundice device. Many of those charges echoed those made earlier on-line by "Mr. Pink," though there's no indication Mr. Asensio is he.

Chromatics has denied the allegations. Chief Executive Darby Macfarlane says the company is exploring legal action against Mr. Asensio and possibly others while it continues to be "in the last stages of negotiations to reach a definitive agreement for global distribution" of the jaundice device. The company's attorney, Eric Lerner of Rosenman & Colin, declined to say whether the firm is considering legal action against "Mr. Pink."

Also involved in the Chromatics saga: Michael Schonberg, the former head of two Dreyfus mutual funds that had big stakes in the stock. Mr. Asensio charged that Mr. Schonberg invested heavily in Chromatics for the funds in order to benefit his own personal holding of Chromatics shares. Mellon Bank Corp.'s Dreyfus this week put Mr. Schonberg on paid administrative leave, as the fund firm and the SEC investigate the matter. A lawsuit alleging breach of fiduciary duty, which is seeking class-action status, was filed in federal court in New York against Mr. Schonberg and Dreyfus; Dreyfus spokeswoman Patrice Kozlowski said the firm "believes the lawsuit is without merit" and "we intend to defend it vigorously."

However the still-unfolding Chromatics saga ends, one troubling aspect of the story is the degree to which some ordinary investors loaded up on this one high-risk stock-in many cases, it appears, acting on the suggestion of an Internet guru, "Skipard" (Mr. Davidson), whom most had never met.

In recent weeks, Mr. Davidson says he has been swamped with phone calls and e-mails from panicked followers who say their retirement-account balances, their financial futures and even their marriages are in jeopardy because of huge bets on this one speculative stock. Many had invested heavily in Chromatics shares using margin loans and have watched their brokerage firms liquidate shares to satisfy "margin calls" as the stock price fell.

Mr. Davidson says he feels responsible for his followers' losses because they looked to him as a "rabbi" -- a role he clearly relished in happier days. But he also says, "They shouldn't have bought so much stock. They shouldn't have margined it."

Cautionary messages have rarely showed up in Chromatics postings by "Skipard," however. He has repeatedly talked about his own huge bet on Chromatics -- now over 400,000 shares, Mr. Davidson says. And he reported excitedly in August 1997 that followers who rarely use margin were taking on margin debt to increase their Chromatics stakes.

The way to make big money as an investor, "Skipard" advised followers late last year, is to "find the idea, be right, bet it big ... and pray like hell."

"What first caught my eye about Skip was his passion," says Jane Fulsang, an Illinois homemaker who posts on the Internet as "Janybird." Ms. Fulsang, 36, who looks to Mr. Davidson as a mentor, is now suffering with 80% to 85% of her family's investment dollars in Chromatics. "I still think I made the right decision investing in this company. I really do," she says. But the stock-price collapse "has been a killer."

And what of Mr. Davidson's on-line nemesis? "Mr. Pink" often refers to himself grandly in the third person and many of his postings have an ominous tone. "He speaks the Truth and is kind to His brethren, but woe unto those who are rude to Mr. Pink or attempt to perpetrate fraud ...," declared one June 8 message.

But he comes across as far less self-absorbed and more thoughtful in many postings on his own Silicon Investor message board (www.techstocks.com) -- "Mr. Pink's Picks: Selected event-driven value investments" -- and in a lengthy telephone interview during which the unidentified speaker simultaneously sends a message to this reporter through Silicon Investor's private messaging system to confirm he is indeed "Mr. Pink."

"I thought it would be amusing to create this sort of delusional character," he says in the interview. "Mr. Pink gets to be arrogant and strange in a business where a real person can't be any of those things."

Internet posters have offered several names as the possible identity of "Mr. Pink," including Daniel Loeb, 36, managing member of hedge-fund firm Third Point Management Co. in New York.

Mr. Loeb, in an e-mail response to several messages, said, "Third Point does not comment on the existence of its short positions and does not comment on negative stories about companies." He didn't respond to the question of whether he is "Mr. Pink" in his e-mail, and said he didn't have time to respond to questions in an earlier, brief telephone conversation from his office.

Mr. Loeb's firm has certainly put its money where "Mr. Pink's" mouth is: Of a sampling of 18 stocks offered as "picks" by "Mr. Pink," 14 showed up as Third Point holdings on March 31, according to Third Point regulatory filings collected by Technimetrics Inc. Third Point's top four holdings -- Summit Holding Southeast Inc., Independence Community Bank Corp., First Sierra Financial Inc. and Solutia Inc. -- are stocks that have been strongly recommended by "Mr. Pink."

Third Point's record suggests the followers of "Mr. Pink" have been right to hang on his words: The firm's primary fund returned 44.3% in 1996 and 52.5% in 1997, according to Managed Account Reports, New York.

"Mr. Pink," in the phone interview, asked a reporter not to "out" him as he had outed Mr. Davidson. At the same time, he expressed no regrets about disclosing Mr. Davidson's identity and accepted no responsibility for the harassing messages Mr. Davidson says he has received. "I didn't make a single one of those calls," he says. "If people did that, they were wrong."

Mr. Davidson says he "would pay a lot of money" to learn the real identity of his Internet adversary -- but says he wouldn't send "Mr. Pink" anything beyond a Christmas card. Above all, he says, "I just want my vengeance in being proven correct" about Chromatics.

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July 10, 1998