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Re: running bull post# 64815

Thursday, 06/27/2013 4:57:55 PM

Thursday, June 27, 2013 4:57:55 PM

Post# of 81578
Bull, ask yourself "Cui bono"?

"Who benefits" from holding the stock price down? Well, this might give you a clue (Hint - it ain't you or I!)



A reduced share price makes a company an easier takeover target. When the company gets bought out (or taken private) – at a dramatically lower price – the takeover artist gains a windfall from the former top executive's actions to surreptitiously reduce share price. This can represent tens of billions of dollars (questionably) transferred from previous shareholders to the takeover artist. The former top executive is then rewarded with a golden handshake for presiding over the firesale that can sometimes be in the hundreds of millions of dollars for one or two years of work. (This is nevertheless an excellent bargain for the takeover artist, who will tend to benefit from developing a reputation of being very generous to parting top executives.) Source: Wikipedia - Accounting scandals



Who wuuld do such a thing?

I suggest you look back at the failed "B-2 Stealth Attack" which, when exposed to public view, was summarily branded a "mistake" and swept under the rug with the faithful admonishing one and all it should never be spoken of again.

However, if insiders wanted to gain sufficient control of the company to take it private and sell it off for their own benefit, would they want to pay a little or a lot to gain complete majority control?

All theoretical, of course,and certainly not the reason that, as you say, any time the stock the stock rises, it is immediately beaten back down by the .0065 bidder.

Except, then again, Cui bono ???

All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident. - Arthur Schopenhauer (1788-1860)