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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: Wayners who wrote (8184)	8/28/2001 5:44:31 PM
From: mmmary	Respond to of 19428

Difference between fraud and just being wrong Posting knowingly incorrect information hoping to get the price up or down is fraud. Being a little off on your projections either way is not a crime. John Westergaard used numbers in his projections which he knew were impossible. His math was fine but the production and COG numbers he used were impossible. He used an impossible projection number for UMCC. With 24 hour shifts the factory couldn't build that many bikes. He didn't use past production numbers as a guide. They ended up building fewer bikes in fact. He also didn't use past COG numbers but one similar to HDI which is impossible for a small new company. The actual cog number was MUCH higher. West knowingly defrauded investors. I even told him his numbers were wrong and why and he said he was gonna sue me if I didn't shut up. He was also paid by the company to say these things. His job was to get the price up. On the other hand there were investors in umcc who thought the product made sense so the stock should shoot. They didn't know enough about valuation and kept posting this stock is great, the market is there, everyone will be millionaires. They did a few projections but they weren't professional so most didn't rely on them. West pretended to be a third party analyst so he was definitely commiting fraud. They weren't trying to swindle people. They just got caught up in it all and lost it all too.