tag:blogger.com,1999:blog-7478408299955066555.post4477782617049109318..comments2024-02-21T05:08:31.128-05:00Comments on Deep Throat: Softbank.....The Art of Self-Dealing......Deep Throathttp://www.blogger.com/profile/02712515268051858186noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-7478408299955066555.post-43469785000098863782018-10-29T22:10:25.891-04:002018-10-29T22:10:25.891-04:00DTI,
We are getting closer to the June 1st 2019 ...DTI, <br />We are getting closer to the June 1st 2019 date when Softbank / West Raptor Holdings will need to deliver BABA shares to cover the value of the Trust Securities. Even with the recent sellof, the share price of BABA is clearly much higher than it was in 2016 when this transaction was completed. It is unclear how the cap and floor work and who bears the market risk of BABA shares but it seems to me that hedging / selling that amount of shares in a down market would not be very welcome. This is an interesting situation to perhaps revisit. Thanks again for your incredible work over the years!PA Investornoreply@blogger.comtag:blogger.com,1999:blog-7478408299955066555.post-20397341771093996592017-03-01T14:40:41.270-05:002017-03-01T14:40:41.270-05:00Here's another, very current example of the ap...Here's another, very current example of the application of 10b-5 RE: material non-public information. The SEC just filed a complaint (yesterday) and froze the assets of "unknown" foreign traders re: Softbank's purchase of Fortress. I know you are just as shocked as I am that something shady might be going on at Softbank/Fortress.<br /><br />https://www.sec.gov/litigation/litreleases/2017/lr23760.htmDeep Throathttps://www.blogger.com/profile/02712515268051858186noreply@blogger.comtag:blogger.com,1999:blog-7478408299955066555.post-22347428477232166842017-03-01T00:08:15.710-05:002017-03-01T00:08:15.710-05:00Agreed....If we look at all the great collapses......Agreed....If we look at all the great collapses....the signs are obvious long before the implosion.....really smart people just choose to ignore them. Why?.... they are invincible...making lots of money by believing in the dream. Deep Throathttps://www.blogger.com/profile/02712515268051858186noreply@blogger.comtag:blogger.com,1999:blog-7478408299955066555.post-68744879780371621802017-02-28T21:13:40.202-05:002017-02-28T21:13:40.202-05:00The evidences you presented certainly put a few qu...The evidences you presented certainly put a few question marks on Softbank's finance. But they fall short to prove outright fraud.<br /><br />That said, this $100B venture fund really sticks out. This is like you go to a pumpkin growing contest. People are showing up with 1000-pounders. Then some guy walks in with one that weighs 5 tons. The natural response is "is that really a pumpkin?" What puzzles me is that Apple, Larry Ellison, Qualcomm, Foxconn and Saudi sovereign fund all have agreed to invest in the fund. We are not talking about Bernie Madoff swindling a few celebrities here. These are sophisticated institutions putting in billions of dollars in a fund whose investment objectives are vaguely defined (at least publicly). If Masayoshi Son is indeed a fraudster, he has to be the Steve Jobs of financial fraud.At the Moneyhttps://www.blogger.com/profile/10042742193373421438noreply@blogger.comtag:blogger.com,1999:blog-7478408299955066555.post-23623921019619362552017-02-28T15:22:58.708-05:002017-02-28T15:22:58.708-05:00Good questions.....with regard to "There has ...Good questions.....with regard to "There has to be a reporter out there looking to make a name from him/herself"....I agree, someone has to break the glass....so I guess that would be me. <br /><br />Re: Short Sellers: Things like this are always tough to short profitably. You have to bet against momentum and access to capital. Even if you are right, you could be holding onto your short for a long time. If you follow my Alibaba commentary on this blog, you recall that based on the economics of the business, IMO the stock price should have been adjusted (my target is $7.00) long ago. But because of the tremendous amount of off shore money available to support the stock, combined with how thinly it's traded, the shell game can continue for a while. There are lots of assets like this out there....the "Magnificent 7" are just the tip of the iceberg.<br /><br />Finally, the 10b-5 rules lay out the definition of an insider and responsibilities involved when selling publicly traded shares and material non-public information. Simply put, (with exceptions) if you are an insider and you want to sell shares to a non-insider, you have to disclose non-public material information. Masa Son and Marissa Meyer (by Proxy through Jackie Reses) are board members (insiders for the purpose of 10b-5), subject to 10b-5 sanctions (i.e. jail time) I discuss it in a little more detail in my December 2015 post: <br /><br />http://deep-throat-ipo.blogspot.com/2015/12/breaking-news-yahoo-ceo-marissa-mayer.html <br /><br />Glad you enjoy my musings....thanks for reading....Deep Throathttps://www.blogger.com/profile/02712515268051858186noreply@blogger.comtag:blogger.com,1999:blog-7478408299955066555.post-67739400471211043632017-02-28T10:57:12.594-05:002017-02-28T10:57:12.594-05:00So I read this whole post (and the previous post y...So I read this whole post (and the previous post you referenced earlier in the article), but did not read all the footnotes. This post although very interesting at first seems to veer towards conspiracy at the end. That's not to say you are wrong, but without more hard facts it's hard to fully digest. Put another way, why do you think more articles haven't been written about Softbanks absolutely terrible results? There has to be a reporter out there looking to make a name from him/herself. Or why hasn't a short seller, like say Chanos, called them out? Finally, could you elaborate more on why 10b-5 would prevent them from simply selling their BABA shares? Thanks!TSChttps://www.blogger.com/profile/01550871167794357511noreply@blogger.com