Now Cuomo is looking to prosecute short sellers who "spread false rumors" to manipulate share price. Let's look at this on the long side.

Schwartz of Bear Strearns says on public TV he has no liquidity problem -

Lehman's CFO and CEO caught in multiple lies in public when Einhorn confronted them about there bad asset situation, evidently to "manipulate" the share price upwards of what normal valuations portend.

GGP's entire management saying they have funding in hand and or in no financing predicament, evidently to "manipulate their share price.

MBIA and Ambac CEO's saying on TV and in print media they are solvent, their losses will revert, and that they expect no more significant losses from mortgages and real estate.

The homebuilder CEOs calling the bottom of the housing market 3 or 4 times in the last year.

I can go on for a while. I know one can say these guys are just expressing their opinion (at least some of them can say that, but some were just flat out lying), but the same can be said for the shorts. That's what makes a market. The US and the UK are trying to clog free market capitalism, and that never works out to the positive. Now, certain junk companies can continue to sell shares to your 401k manager and float up and up until the economics finally catches up to them, then bank - your broke just because the government tried to censor the guys who perform some of the most rigorous research on the street. Tell me lawyers, do the 401k plan participants have legal recourse against the censors???

Our republican administration shames me. They go through all of this effort, and have yet to demand that the companies who are holding all of this trash on their balance sheets come clean and show the "transparency" they are requesting from the hedge funds who invest in the companies. As a matter of fact, the FASB rules that would have given more transparency were pushed back to allow companies to hide this trash!!! Yet, the guys who short the trash companies have to become more transparent!

Rant offline...

Published in BoomBustBlog
Wednesday, 27 August 2008 01:00

A note on Thompkins PLC

This is a company that popped up on one of my European screens. I don't have a position in this company, but thought my readership may find it interesting. Each of my shorts are usually the result of a screen of about 250 to 600 companies in a particular sector, industry or segment.


Price Chart of S&P 500 Index Returns and Tomkins Stock price Returns:



Tomkins Plc, along with its subsidiaries, is
a global engineering and manufacturing company. It has two business groups:
Industrial & Automotive and Building Products. Under the Industrial &
Automotive business group, the company manufactures a range of systems and
components for cars, trucks and other industrial equipment. The Industrial
& Automotive segment operates through four business divisions: Power
Transmission, Fluid Power, Fluid Systems and Other Industrial & Automotives.
Building Products consist of two business divisions: Air Systems Components and
Other Building Products. Air Systems Components supplies the industrial and
residential heating, ventilation and air conditioning market. Other Building
Products manufactures a variety of products for the building and construction

Tomkins                             Plc

& Automotive





Industrial & Automotive

Systems Components

Building Products


Published in BoomBustBlog
Page 36 of 36