To: out_of_the_loop who wrote (4962 ) 5/18/1998 11:26:00 PM From: LegalBeast Read Replies (1) | Respond to of 8242
Dr, you know I cannot let a challenge like that go unanswered. You pushed the right button and away we go. (You just have to hate it when that series of neurons fires) Anyway, if we were analyzing the wrongdoing that flows from their actions, the test of whether or not they acted would be measured by the test of the "reasonable person". In other words, what actions would the reasonable person have taken under similar circumstances. They don't even come close to passing the smell test. Now then, lets examine for a moment, their strategy. Here we have a company that knows, indeed has been sanctioned before by the SEC for causing the same effect, the effects of their actions. They don't want the price at 8 for whatever reason. If they wait till the site opens and it does then they have no story. However, if they cast enough doubt on the folks who have no idea other than "Volume is up, price is increasing" (and yes, there are a bunch of investors that play only those statistics) then their goal is met. The price drops, they cover their shorts, and then go long as the site opens and effectively, the heat that they take is minimal compared to the profit they claim. I put it to you, if you were our metaphorical "reasonable person" and a mere slip of your lip could result in an immediate profit within a couple of days, would you do it? I submit it would be like having tomorrow's stock report today. The reasonable person WOULD do it. That is why we have laws to prevent the abuse of such power and it is exactly why everyone of us should write the SEC and voice a complaint against them. Remember that the only reason that we pass laws in the first place is to cure some problem that exists. In this case the law was passed to prevent these abuses of power. Disclaimer: IMHO