Message ID: 60314
Posted By: notmrnice
Posted On: 2003-11-11 11:45:00
Subject: Re: The Cohen Pump

In the case of this pump, incompetence is still a valid defence. If they were to investigate Cohen for securities fraud, they would have 2 scenarios to consider:

1) Cohen bought into the stock in good faith. Cohen sincerely believed SCO had a winning case, and that besides the potential windfall, SCO's revenue from ongoing operations were solid. That Cohen later praised the stock to reporters, is not uncommon fro fund managers. They are often asked what stocks they like, and why they like them. When they give such recommendations, they usually have bought in already, otherwise they would have given away a competitive edge.

2)Cohen bought in on the speculation that hype about the lawsuit will inevitable cause a rise in the stock price. In addition, Cohen, despite knowing that the suit could have no merit whatsoever, went on and touted the stock. The company being a small player, and little float enabled Cohen to singlehandedly pump the price several percentage points, in a classical boliler room operation.

We all know that 2) is what really happened, but it is really hard to prove this over 1).

If nothing else, I hope he gets dragged into the lawsuit as a witness, and that his reputation is cooked. At the end of the day, the gains of this boiler room operation will pale next to the collateral damage to his reputation. At the end of the day, scenario 1) will brand him as an incompetent ninkonpoop, and scenario 2) as a crooked fund manager.


Message ID: 60324
Posted By: walterbyrd
Posted On: 2003-11-11 11:54:00
Subject: Re: The Cohen Pump

>> 1) Cohen bought into the stock in good faith. Cohen sincerely believed SCO had a winning case, and that besides the potential windfall, SCO's revenue from ongoing operations were solid<<

"A winning case" as in scox winning a case against ibm? That couldn't be it. Cohen first said that scox would generate $1.30 EPS in 2004 - even without winning the lawsuit. Cohen refused to give an reason for the remarkable estimate - I did call.

Later Cohen raised his 2004 estimates from a completely unjustifiable $1.30 EPS in 2004, to an even more astonshing $3.00 EPS in 2004. This time Cohen forget to mention his own considerable holdings. As usual, Cohen gave no justification for his incredible predictions.


Message ID: 60334
Posted By: freecode_99
Posted On: 2003-11-11 12:09:00
Subject: Re: The Cohen Pump

Yes, he did that. Thanks Walterbytrd for the reminder.

I did complain to the SEC three times about him and the obvious "no reason" pumps without disclosures.

Waiting to see if the axes, they do fall.


Message ID: 60352
Posted By: notmrnice
Posted On: 2003-11-11 12:50:00
Subject: Re: The Cohen Pump

Thanks for setting that straight. Shoudl be enough proof to wrap up the case, and firmly put him in the crook category. Hopefully 1.5 million shares x $20 = $30 million dollars is enough of a swindle to pique SEC's interest.

If not we must depend on NY AG. After all, they went flat out after Martha Stewart for a couple of hundred grand.

So far, they've been kicking the brokers for market timing, and the analyst/finanacial banker combos for pumping, conflict of interest and questionable IPO arrangements.

Time to go after fund managers for pumping and fraud. Spitzer, we know you won't let us down.

Forget about SEC. If we want anything done, leave it to the NY AG.


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