The Unsinkable brian cork™

Brian Patrick Cork is living the Authentic Life

PREY for Wall Street

April7

that’s no typo.

http://lnkd.in/bMEj-cd: I loved this story until I realized its an infomercial for Wall Street and big banks.

it feeds all of our suspicions that the Street is rigged, and then makes the case that the whole sinister mess is resolved and fair.

thats garbage. that said, its a fun read. just don’t take it too seriously.

The Wolf Hunters of Wall Street

The Wolf Hunters of Wall Street – nytimes.com

How a band of outsiders discovered that the stock market was rigged — and set out to change it.

peace be to my Brothers and Sisters.

brian patrick cork

shorting Facebook, part II

May18

I’m sure I have another post on this Blog called something like, “shorting Facebook, blah, blah, blah…”. you go look for it, I’m feeling quite self-involved, today.

background for warm-up:

short sellers bet against shares by borrowing the security, then selling it. if the stock drops, they buy it back at the lower price, return it to the lender and pocket the difference as profit.

let’s be very clear… the primary reason the typical retail investor (you) can’t short Facebook (FB) TODAY
is because “shorts” looking to bet against Facebook early face an uphill battle. honest traders will admit the stock will be hard to borrow, at least for a few days – and, only the best-sourced hedge fund managers will able to find lenders.

a buddy of mine that is a prime broker at one of the top underwriters of the IPO said the firm would not be lending shares, at least until the initial settlement in the first three business days of trading. this is a form of “managed” risk.

seriously.

…and, it’s legal.

seriously.

“I don’t know how many shares will be available for shorting,” said the broker, who requested anonymity (hell yeeeeah). “We would only provide them once the deal has stabilized.”

voila!

peace be to my Brothers and Sisters.

brian patrick cork

General Motors ON

November16

It’s no secret that General Motors (“GM”) has it’s Initial Public Offering (“IPO”) this week.

What might be a secret to the masses, however, is it’s truest underlying purpose.

The government lent money to GM. There is some thinking that the government could own as much as sixty-one percent (61%) of GM. And, the big auto-maker, as leading and cutting-edge as it’s vehicles have become, will struggle for decades to pay our thinly stretched United States Treasury back – and, it does not have a prayer of meeting it’s pension obligations.

So, they, that insidious “they” (no doubt led by the pipe-smoking-black-dog), mind you, are going to foist the problem on the American Citizens the very best of the good old fashioned way, certainly time-honored… By manipulating the stock market.

Seriously.

Here is how this particular effort will play-out. You simply need to make the decision if you are going to benefit, or keep getting your collective asses kicked.

The IPO will likely open up around $28.00 a share. Insiders (by many a definition) will pay less. For example, the United States Treasury is going to own shares as will friends of the big brokerage houses. JP Morgan is the syndicate lead and they are making all manner of new friends on Capital Hill with this play. This is not widely publicized for obvious reasons.  In any event, based on the aforementioned loan details, the Treasury will break even when the stock hits approximately $44.00.

So, it’s a good bet the stock will do just that, and then some.

I’m guessing there will likely be close to a $6m billion over subscription of the stock leading up to the IPO. My experience tells me we’ll see about $1 billion in roiling. Then that “over-hang” of back-orders will kick the stock up. After that, it’s all about “management”.

This is not evil. This is simply the way things work. You, why not you, can argue it’s part of the American dream.

I have to say something. It’s one of the many reasons you read this Blog. And, it’s something a Prudent and Optimistic Gentleman finds, required.

Good luck. But, there is little of that actually involved. Fortuna, perhaps, eh Dr. Pappas?

UPDATE 11/17/2010 @ 1pm: VOILA! – GM Confirms Expanding IPO by 31 percent

Peace be to my Brothers and Sisters

Brian Patrick Cork

here is a tip for you

July8

If you ask most people how, why or when they think the practice of “tipping” (not relevant to cows unless you are eating them) originated, you may get a lot of different answers (assuming the responder cares).

Generally speaking, this article on Yahoo! covers the majority of theories.

But, it’s wrong (the article – not tipping).

David Sugarman (my Jewish business mentor from Los Angeles who once told me: “Brian, you could sell used cars to Ford”) once filled me in on the historical facts around tipping. Interestingly, that collaborated what my Grandad had told me. Then later, Aubrey Nelson, that biographer and skalawag, came up with a similar theory.

So, it’s true.

David Sugarman was always right (remind me to tell you the story about David, his sail boat, me, and the art of selling – and, listening).

To wit…

Tipping, as we know it, originated in New York around the turn of the century when leading Wall-Street Barons would reward good service with a tip – a few dollars and advice on a specific stock to buy.

The lucky waiter would then rush down to Wall Street, hand a trader his money, and “bet” on the stock. The best results were realized when the waiter also let the trader know whom had given them the tip.

This was also a foundation for insider information and trading.

Peace be to my Brothers and Sisters.

Brian Patrick Cork

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What’s All This About?

"What am I looking at?", you might wonder.

Lots of stuff.

Meanwhile, here, I discuss events, people and things in our world - and, my (hardly simplistic, albeit inarticulate) views around them.

You'll also learn things about, well, things, like people you need to know about, and information about companies you can't find anywhere else.

So, while I harangue the public in my not so gentle way, you will discover that I am fascinated by all things arcane, curious about those whom appear religious, love music, dabble in politics, loathe the media, value education, still think I am an athlete, and might offer a recipe.

All the while, striving mightily, and daily, to remain a prudent and optimistic gentleman - and, authentic.

brian cork by John Campbell





photos by John Campbell

 

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