tag:blogger.com,1999:blog-10263720.post3772545273845578355..comments2023-10-21T07:24:46.918-04:00Comments on Straight Flushing: Eric Savitz is cluelessBrian Doylehttp://www.blogger.com/profile/01652827640480365357noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-10263720.post-80116899705064675622008-06-24T11:53:00.000-04:002008-06-24T11:53:00.000-04:00I defer to you on the letter of the securities law...I defer to you on the letter of the securities law. If this guy (or whatever entity generated the SA post) was just making stuff up, I concede that he's exposed himself to legal liability.<BR/><BR/>My point is that anyone who finds apparently non-public information on SeekingAlpha should be <I>extremely</I> suspicious of it. I don't believe the people that sold MVIS after reading that were so unsophisticated as to just act on the information without questioning it. <BR/><BR/>This leads me to suspect that the guy's argument really hinged on widely accessible (and correct) <I>public</I> information. That TXN announcement was last week, apparently. <BR/><BR/>My point is that people who sold thinking they had just been given material non-public information by some random dude are total morons and the SEC shouldn't waste any time or money protecting them.Brian Doylehttps://www.blogger.com/profile/01652827640480365357noreply@blogger.comtag:blogger.com,1999:blog-10263720.post-35443247587296570772008-06-24T11:25:00.000-04:002008-06-24T11:25:00.000-04:00You are way off base and miss the point.1. You tal...You are way off base and miss the point.<BR/><BR/>1. You talk about Mr. Mulcahy--but what if there is no such person. He didn't seem to be suggesting that his posting name was a pen name. As such, by posting under the name of Liam Mulcahy the poster gave himself added credibility.<BR/>2. As you noted, he said he was a short seller at the tag of the article. Okay, so now we know that this Mr. Mulcahy is shorting and that too adds more credibility to him because his comments fairly match up with the sell bias.<BR/>3. The icing on the cake is that this shorter Mr. Mulcahy now makes a very important disclosure. He's not just some joe who trades once a month or screws around with an online discount account. To the contrary, this guy is a professional who works at a hedge fund. <BR/><BR/>Add up points 1, 2, and 3 and the bashing commentary gains far more credibility than something posted by Mr. Chuckles or Sammy the Fox or ChampionPicker. We are lead to believe that the poster is a real human being named Mulcahy who shorts stocks for a living at a real hedge fund.<BR/><BR/>Why do all those points matter? Because under the federal securities law any material misrepresentation in connection with an effort to move a stock for profit may be deemed fraudulent market manipulation. Add to the fact that Mulcahy's post didn't just express an opinion but suggested verifiable facts about MVIS' likely demise, cash on hand, and failure to meet a critical OEM deadline (none of which the company would confirm and none of which seem clearly true), and you have something that could negatively impact the stock and did. Just read the commentary from other blogs and news services that attribute the stock's drop on Monday solely to the Seeking Alpha article.<BR/><BR/>You may disagree with how much of Mulcahy's commentary is just lawful "opinion," and I will respect that, but you cannot argue that this poster loaded the issue with so many additional attributes rarely seen in a SA post, that it strongly suggest a fabrication whose sole motive was to manipulate the market. Also, look at the virulent neo-Nazi postings on MVIS' Yahoo forum and how they just always happen to coincide with favorable news (and were they coordinated by the supposed Mr. Mulcahy?)Anonymousnoreply@blogger.com