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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: MarkFin who wrote (5282)	2/1/2003 9:12:12 AM
From: Proud_Infidel	Respond to of 25522

Mark, the topic of hedge funds and their ability to operate in the dark. The main point of the segment was that they can take a short position and publicly start a negative publicity campaign, even using misinformation, on a stock and cover when the masses sell. The SEC is looking at it closely and may require disclosure of their holdings. I did not see that segment but sure hope that the SEC acts soon on this. People who have the ability to move markets, either through appearances on a national program like CNBC, or those who move massive quantities of capital, or both, cannot operate without accountability. This should be obvious to all but for some reason is not. I personally believe lack of legislation on this matter is a matter criminal negligence by those whose fiduciary obligation it is to oversee the markets. Brian

To: MarkFin who wrote (5282)	2/1/2003 10:51:29 AM
From: Kirk ©	Read Replies (1) \| Respond to of 25522

Actually, a hedge fund being short company X then getting on national TV to say why is no different than Kevin Landis buying up tiny market cap stocks at huge price to sales multiples and then going on CNBC to tell us why they were so great... The stocks would soar and dumb money would flow into his fund where he'd take his cut (over 1% if memory serves me) and buy the bubble stocks to drive them even higher. The shorts were the ones with the balls who saw this and make people pay for their greed or stupidity. I see the hedge funds who are big time short now as just the opposite... the hedge fund managers get their sales commissions and the smart ones don't risk all their money in their funds. I don't think the shorts were any more wrong than Landis or whomever getting on TV to tell us to buy the stocks they were long. I do think we need rules that require these companies to disclose what they hold and how much before they are allowed to speak on TV, radio, print or internet. That is, you can talk your position, but you MUST disclose your portfolio investment in that position along with any other financial relationships.