By: thepennyking $$$$$
23 Jul 2002, 10:48 PM EDT Msg. 27441 of 30556
(This msg. is a reply to 27432 by Devils_Adv.)
666 Advocate: Just cause for Saudi Princes to move out of US Equities and into liquid rising Euro as previously posted.
At the beginning of the summer of 2000, billionaire Saudi prince Alwaleed bin Talal jumped into the Internet stock game with a king-size splash.
On May 16th, 2000, the then 43 year-old prince purchased a $50 million (US$) stake in each of six companies: Amazon (Nasdaq: AMZN), eBay (Nasdaq: EBAY), DoubleClick (Nasdaq: DCLK), Infospace (Nasdaq: INSP), Internet Capital Group (Nasdaq NM: ICGE) and Priceline.com (Nasdaq NM: PCLN).
The prince reportedly studied more than 100 firms before choosing his "basket of Internet companies." However, as 2000 summer's end approached, about half of his $300 million investment had been lost. Today, it is all but worth less than $50 million.
The prince bought into the six Web-related stocks for an average price of approximately $67, but as of the closing bell on August 28th, 2000 the stocks averaged only $36. Today his portfolio is worth an average $12, less than $60 million.
Investing with Internet Capital Group
The prince's venture capital choice was Internet Capital Group, Inc., which fell from approximately $35 to $0.23 over the past two and a half years. Today he could buy out the whole company for less than his entire original investment.
About the Prince
Prince Alwaleed was the sixth richest individual in the world with $15 billion, a fortune he created from well-timed investments of his inheritance. Alwaleed invested in Citicorp in 1991, giving the company a sorely needed cash infusion of $590 million. He recently invested another $500 million and now holds just under 5%, being its largest individual stockholder. His stake in Citicorp was valued at $10 billion last Friday with about 280 million shares.
With his cash position in other accounts, he could easily have shorted C by 25 million shares daily for the past two days and cover tomorrow, taking in a nice $250 million profit in three days. Not bad for someone whose religious beliefs include the abhorance of charging interest on borrowed money! More irony in the fire.
Despite the steep drop in the value of the prince's Internet portfolio, the prince is known as a buy-and-hold investor, and there were many observers who believed his Internet stock selections had long-term potential. How wrong can you get?
Based on solid intelligence sources, it may appear that the once bullish Prince could soon be known as the Biggest Billionaire Bear in history. Shorting the likes of FNM which traded 6,666,600 shares today, almost twice the average volume, and which closed on an uptick, and is the subject of continued congressional scrutiny behind the scenes, with other World Comm events taking center stage of late.
It would not take much to short 10 million shares a day of FNM for this Prince, while at the same time selling off the equivelant in US long term 30 year treasuries, causing yields held in FNM's portfolio to decline further, and continue its downward trend from its high so far of $83 this year. FNM is down 20% from its January closing prices and down 25% from its 52 week high. And trending further south.
As Saudi money continues to distance itself from the US and the Bushwacking taking place, the dollar continues its voracious slide, despite covert interventions, and Saudi Princes who took advice from certain intelligence previously posted have gained 15% return by investing in liquid Euro's in just the past 12 weeks.
Save all your pennies, you are going to need them more than ever!
(Voluntary Disclosure: Position- Short; ST Rating- Strong Sell; LT Rating- Strong Sell)
By: IownsomeNVEI $$$
02 Jun 2001, 04:21 PM EDT Msg. 54942 of 85959
WHAT IS THAT LOUD, HORRIBLE SUCKING SOUND?
Im not that hot with writing but I just wanted to share this idea that popped in to my head.
As you know we've had a hot market for a few years and then it just tanked.
Iv been in the market since the Dow was 3300 and at that time a run to 4000 I thought was amazing. A few years down the road here comes 12,000, well close.
I was wondering where all this money was coming from. Would it be hard for a few foreign countries to Inflate our market and then pull out causing what we are dealing with now?
There are companies going bankrupt, all the people I know that are in the market say their stocks dropped and they sold and lost money. Do you know anyone or a company that's in the green? Where did the money go?
Did they invest in our markets, pulled out and ran with the money back to their countries?
That and in conjunction with high oil prices to ruin the US economy?
This is just an idea that I had.
What do you guys think? Could it happen?
Your comments are welcome,Im sure Ill learn something :)
Thank you
God Bless America!
AL
This and companies cooking the books!
If you don't have the time to do something right, where are you going to find the time to fix it?
-Stephen King
