super stocks; the long and short of getting rich, rich, rich/ part 2

super stocks; the long and short of getting rich, rich, rich/ part 2

fiction
Edward w Pritchard

More addicting than gambling at the casino is watching super stocks implode. It's like watching gossipy day time TV to me. When the CFO resigns suddenly over accounting or inventory irregularities I grab a bag of microwave popcorn and sit engrossed and watch the stock price of the high priced company involved implode on CNBC financial TV. It's a combination of Judge Judy and a who's the Father daytime reality show to me.

I was a " workout" officer at a bank once you know; I worked with businesses that owed the Bank a lot of money that they had foolishly spent and had no cash flow to pay back. For every successful business enterprise there is a failure or two out there leasing a couple of Lexus' for the top guns of the senior management with money that was supposed to be used to retire debt or repair the fleet of tow motors.

My favorite part of drama of watching high priced stocks implode on financial television is watching one of the young beautiful financial hosts grille the CFO. It's best if the company involved never hired the financial news network to tout their stock back when things were going well. The host always wanted to be a trial lawyer and this is their chance to rake the CFO over the coals. The acting CFO still has a lot of stock in the company involved, although the stock price just dropped from $100 to $30 over just revealed accounting irregularities earlier today at the earnings conference call; the CFO was given ten of thousands of shares at 50 cents a share a few weeks ago when hired to arrange a buy-out or guide the enterprise through workout and bankruptcy. Watch the CFO twist and evade questions, it's like Judge Judy vs. a deadbeat dad on reality television.

Today's implosion is Salix Pharma. [ Slxp]. A Drug company with some creepy inventory issues. Creepy for the shareholders at least. Watch the stock fall 50% on the morning open. The CFO resigned and is in seclusion. Fifty New York law firms have announced an intention to help share holders get a small part of their lost money back for a small and customary fee, plus the usual and customary costs and expenses. Salix was recently a respected and fast growing company, great financial ratios and large potential.

This should be fun. Watch Salix Pharma's stock  take a 50% haircut on National financial TV today.

Be like me, since I was a boy in the 1950's I always rooted for the Native Americans in cowboy and Indians movies on afternoon television.

Nowadays, I am passionate about watching the drama and Karma of misguided American businesses falling from grace.

Pity the shareholders of Salix today, But, enjoy the drama of watching the corporation squirm a bit.