To: Mama Bear who wrote (90 ) 2/28/1999 1:42:00 PM From: Toby Zidle Read Replies (3) | Respond to of 431
With all due respect, Mama Bear, Mr's Pink's tactics are magnanimously described as 'scare' tactics. Consider Cendant, where fraud was demonstrated beyond doubt. CD's lowest trade was 16% of its highest trade in the weeks earlier. A mighty devastation indeed. Now look at PDX. Fraud is NOT proven; the worst reasonable charge is "accounting irregularity". Highest trade was $64 5/8. Mr. Pink predicts a fall to $1 1/2. This amounts to less than 3% of the high trade. Comparing to CD, this shows that a company with demonstrated fraud performing some 500% better than PDX. Look at the contrast here. To call Pink's forecast any thing less than a 'scare tactic' is being undeservedly charitable. And as to your 'dead cat bounce' phenomenon: to bounce from a 2/19 low of $18 1/16 to a 2/26 high of $33 5/8 is an 86% recovery. This has to be the most elastic dead cat in recent history. At this price, I'm neither bullish nor bearish on PDX, though I do see that a short-term pullback (yes, 'pullback') would be entirely normal. Here's what I see as motivating Mr Pink. He has said he's short. Probably went short in the low $20's. This 'dead cat bounce', as you call it, is hurting his wallet big time. In desperation, he has to be as negative about PDX as he can. This means rolling out his big guns because he's hurting. He can do that on the Yahoo board, because lots of naive investors are easily impressed. On SI, I think most seasoned investors see through his tactics. He won't get a lot of argument, though, because frankly, who cares? The market will handle it however it goes and in a couple of months, one of us can come back and say "I told you so!" But that person won't be Mr. Pink.