Silicon Investor (SI) -- The First Internet Community

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.

Non-Tech : Conseco Insurance (CNO) -- Ignore unavailable to you. Want to Upgrade?

To: david siple who wrote (451)	12/4/1997 9:59:00 PM
From: M.A. Miller	Read Replies (1) \| Respond to of 4155

CNC can't sue because its opinion, not slander. A company can't sue for someone saying to sell a stock. If he flat out alleges fraud, which he hasn't yet, then that's grounds for a lawsuit. CNC has responded to Dirks, just not to all the detail. I read his report. There is alot of crap in there. For example, he claims that Gongaware has no experience in marketing. Bull crap. He states that salary incentive plan is too lucrative, yet he didn't raise that issue until now? It's generous but fair considering his performance. He faults them for buying back stock, and faults them for using up their cash for stock buybacks which leaves little room for future acquisitions. Doesn't make sense. Everyone at the analysts conference laughs at him. Their accountants pass on their accounting techniques. Dirks isn't claiming their being fradulent, just using improper accounting. That's a big difference, and the SEC won't permit proxy's with improper gaap accounting. That's why PennCorp couldn't close the WNT deal and CNC could. Just think about how much Dirks has lost his clients with his recommendation to sell short at $40. What else do you expect him to do but keep issuing these reports. I agree with your decision to get out of CNC. If you can't stomach this guy, then get out.

To: david siple who wrote (451)	12/5/1997 3:18:00 AM
From: dfloydr	Read Replies (2) \| Respond to of 4155

My feelings exactly. It would be interesting to see if Century Shares Trust in Boston owns any CNC. They are a bunch of savvy insurance analysts and historically have owned mostly insurance stocks with some banks thrown in. I might call Bill Dyer and see what they say. For a while Dirks was called a bunch of names back in 1973 when he fingered Equity Funding. Law suites were threatened and if I recall, actually filed. Equity Funding ran out the argument about all the accountants they had survived, the filings they had made, the obvious scrutiny that they had survived doing their stock and bond offerings over the years - but after a while the roof fell in - on them, not him - suicides and jail followed. In that case there was real fraud - faked policies. Dirks is not suggesting fraud here, rather he seems to question accounting practices and forecasts on which they are based. His report points to some items that would seem to be a matter of fact - for example extrodinarily high good will - which I always regard as a problem. Floyd Russell