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New 27yr old rockstar value investor


valueorama

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The guy deals in manipulating prices on penny stocks and came up with an idea to sell imported sand as holy.  He read the intelligent investor so he must be legit.

 

These types end up ruining their scheme by attracting media attention.  Alex Hope a few years back as the genius currency trader, or that high school kid in the NY Post.  They all share the same quality of living it up at the club and spending a lot to maintain a certain image.

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Thanks for sharing the story, it is an interesting read that however has nothing to do with value investing other than a passing mention of Graham's book.

 

How is what he's doing anything other than usurious lending? This guy is not an investor, even less so a value investor. Shady financier or lender of extremely last resort seem more apt descriptions. I think rpadebet got it right for what's in store for him...

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It's an unfortunate securities loophole he's exploiting.  For example, in Canada the exchanges will not let you issue shares, even via convertible debt, below $0.05 a share.  So, you cannot do this.  It would be very easy for U.S. securities regulators to stop this practice.  Cheers!

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Seems like I have seen this movie before. (forgot the name)

I think lawsuit->prison/bankruptcy->book deal->speaking circuit come next.

 

Seems like Mr. Circuit Speaker is doing just fine though... maybe our punishments are not harsh enough.

 

I think he got punished fairly.  He probably still has money stashed away but at least he went to jail.  Many of these guys actually don't get punished.

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Seems like I have seen this movie before. (forgot the name)

I think lawsuit->prison/bankruptcy->book deal->speaking circuit come next.

 

Seems like Mr. Circuit Speaker is doing just fine though... maybe our punishments are not harsh enough.

 

I think he got punished fairly.  He probably still has money stashed away but at least he went to jail.  Many of these guys actually don't get punished.

 

... and he lost his wife.... who, at least in the movie was hot

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It's a bit tricky to figure out what he's doing, and where the money that he ends up making, coming from. I actually got more curious about the person when he dropped Ben Graham's name...does it have anything to do with financing a quasi-company with convertibles? The only passing resemblance to what Graham/Buffett say and what he does is getting more in value than what he gives up, and he does do that. And that's based on what I know about Graham/Buffett, not what Sason says or what Bloomberg interprets it to be.

 

As far as I can tell, he's offering loans to companies (which ought to be savvy counter-parties) and pretty much gets a guaranteed return as long as there's liquidity. His risk is not just repayment but also liquidity. And as far as I can tell, there is no such thing as an "unfair" deal if there's no coercion or deception.

 

Maybe I read the article too fast...but can someone explain to me what part is "shady" or "manipulative" or causes a "moral dilemma" ? The companies do read the debt indentures right? And the shareholders who buy the shares do realize their company is not solvent right? Seems like Sason has found out a nice way to monetize the market's inefficiency (stupidity?)

 

Or maybe I just read the article too fast...

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