8 ms·

Zynga Insiders Who Cashed Out Before The Stock Crashed

136 points by larrys 14y ago

iblaine 14y ago
It is common for 100% of all shares of an IPO to come from insiders and VC firms? Or should at least some of it come from the company itself?
larrys 14y ago
"I know many of these folks personally, including at the company's underwriters, and like and respect them. I think the last thing they would intentionally do is unload stock when they thought it was about to crash--especially when the amount they made in the sale, though huge, is still relative chicken-feed for them. Also, all of these folks only sold a fraction of their holdings, so they've been hammered along with the rest of Zynga shareholders by the subsequent collapse." The above is of course what is "below the fold" and the "to be sure" statement that is supposed to inoculate against accusations of being misleading. But above the fold of course is the link bait title that draws you in and makes you think that something terribly wrong has happened with this cash out.[1] Missing of course is the amount of other stock or what their losses were. An alternative piece that could have been equally good bait would have been perhaps "Zynga insiders who took a bath when the stock crashed" with the "to be sure" as "they also cashed out a small percentage of their holdings ..." [1] Edit: I'm not making a judgement on whether what was done was wrong by the way I am only presenting my opinion on how this was written and an alternative version.
- Evbn 14y ago
  If it wer chicken feed, why would they bother selling? Note that their wealth that is tied up in zynga stock is not wealth if it destined to be worthless before liquidation.
- samstave 14y ago
  No matter what anyone says, to me, zynga is silicon valleys groupon. The worst company in the valley. I like seeing them fail.
  - hkmurakami 14y ago
    The company does have honest employees, including designers and engineers (I know a few personally). Yes, it can be argued, "It's their fault for working at an evil company in the first place", but it's tough for me to see the 'regular folk' suffer as well :(
    - user49598 14y ago
      All companies, positive or negative, have some honest employees.
    - vtry 14y ago
      They are guilty for working for a evil company. Ignorance of the crime does not make you innocent.
      - hkmurakami 14y ago
        What if your company was acquired by them and you're in vesting period? Are engineers of the acquired company guilty of a career move that they had nothing to do with? (this is the exact situation my friends are in)
        famousactress 14y ago
        Yes. You choose who you work for (before the acquisition and after), and stock options are a an understood risk. Let's not pretend otherwise.
        jmount 14y ago
        Given Zynga's history they likely won't vest anyway (clawbacks).
        samstave 14y ago
        Look how well that worked out for OMGPOPs CEO who came out in public making horrible statements of some of his employees. He deserved to be acquired by Pinchs and it showed his true colors. The day OMGPOP was acquired, I deleted draw something. I've played games my whole life, computer games are what got me into computers as my career, but I have never played a Zynga game and never will. I boycott everything the company does as a personal preference. I don't think all the employees are bad, but anyone who is blatantly working to do Pincus' theft of others' work certainly KNOW they are doing it and that's pretty shitty.
- trance 14y ago
  Naw, I like Henry's version better.
- sajid 14y ago
  It seems to me that insiders only dumped a fraction of their holdings because that's all they could get away with. If they could have dumped more, they would have.
- zzzeek 14y ago
  > Missing of course is the amount of other stock or what their losses were. why on earth would that matter ? How much money did Martha Stewart go to jail for ? If they recouped 1% of their losses via insider trading, that's...insider trading !
ChuckMcM 14y ago
The missing piece in this story is when the registration for this sale was put out. It isn't like you can just 'decide' to sell this many shares, my guess is that it is mentioned in the original prospectus somewhere that some point after the IPO these additional shares would be sold. That it occurred in the same quarter that the stock melted down means that they better have solid documentation and there are going to be lawyers sniffing around for a potential shareholder suit. If the paper trail is solid though no suit will materialize.
- antr 14y ago
  I sometimes wish that VCs had some legal responsibility when blogging about their portfolio companies too, specially when discussing valuations. They keep cheerleading on a clear conflict of interest, non-stop. Here is Fred Wilson: "Pandora is at ~$1.5bn. LinkedIn is at ~$6bn. Groupon is at ~$15bn, Zynga is at ~$7bn, and TripAdvisor is at ~$3.5bn. We can (and surely will in the comments) argue about these valuations. Some will say they are too high. Some will say they are too low. That's what makes a market. But in the aggregate, these valuations do not seem ridiculous to me. The public market investors are valuing these companies at prices that have some rationality to them." Source: http://www.avc.com/a_vc/2011/12/some-thoughts-on-the-ipo-market-for-web-companies.html http://www.avc.com/a_vc/2011/12/some-thoughts-on-the-ipo-mar... When he says "...these valuations do not seem ridiculous to me." he is implicitly saying that their is (fundamental value) upside to the stock. Not in a million years could Fred Wilson sustain such argument with numbers. Implied growth rates just to value Zynga at ~$7bn means double digit growth (revenue and cash flow) for years, AND even higher growth rates are required if IPO investors want a return on their investment. Unfortunately his audience buys into the hype, regardless of the real economic value behind the companies, and for him to keep doing this on a clear conflict of interest demonstrates his low moral standards. These actions should not go unpunished, and are no different to any other legal "issues" that lawyers might pick up from the Zynga prospectus.
  - veyron 14y ago
    " They keep cheerleading on a clear conflict of interest, non-stop" That's their business model: they buy and then pump the companies in hopes that someone will buy stake from them at a higher valuation later. The nature of the VC model precludes multi-decade investments and incentivizes quick exits even if they blow up in others' faces FW replied to a similar remark i made: http://news.ycombinator.com/item?id=4068495 http://news.ycombinator.com/item?id=4068495
Judson 14y ago
Interesting to note that it was pretty well reported[0][1][2] that the bulk of this second Zynga offering would be for management and PE firms to get liquidity. This, though, is the money quote from the Reuters article that could have been a red flag (Though I'm honestly not sure how often it happens): "Zynga waived a lock-up arrangement to facilitate the offering. Investors are typically expected to wait about six months after an initial public offering to sell their shares." [0]:http://www.cnbc.com/id/46833267/Zynga_Shareholders_Selling_43_Million_Shares http://www.cnbc.com/id/46833267/Zynga_Shareholders_Selling_4... [1]:http://blogs.wsj.com/deals/2012/03/14/zynga-shareholders-to-sell-up-to-400m-in-shares/ http://blogs.wsj.com/deals/2012/03/14/zynga-shareholders-to-... [2]:http://www.reuters.com/article/2012/03/23/net-us-zynga-idUSBRE82K1BX20120323 http://www.reuters.com/article/2012/03/23/net-us-zynga-idUSB...
snorkel 14y ago
I suppose we should all be glad that some VCs were able hit a jackpot so soon, this is just what provides incentives for other VCs to keep investing in tech startups.
- forgotAgain 14y ago
  I disagree. If downstream investors decide that tech start-ups are a scam rather than a good investment the VC's will have no one to buy them out.
- tatsuke95 14y ago
  >"I suppose we should all be glad that some VCs were able hit a jackpot so soon, this is just what provides incentives for other VCs to keep investing in tech startups." If I said: I suppose we should all be glad that some mortgage brokers were able to hit the jackpot so soon, this is just what provides incentives for other mortgage brokers to keep pushing home loans on people. I'd be lynched. I agree it's a dog-eat-dog world, and that investors have to know what they are getting into when this stuff goes public. But the fact that VCs are pumping this crap up then dumping it on the public (who end up taking a bath) is not a positive development. It sucks, because for every Zynga (or pets.com, or webvan) there are 5 great companies that these VCs are supporting. But how can the public continue to trust this system? Fool me once...
vtry 14y ago
The investors should demand their money back.
corford 14y ago
From the article: "I think the last thing they would intentionally do is unload stock when they thought it was about to crash" It looks like at least one law firm disagrees: http://www.marketwatch.com/story/newman-ferrara-llp-announces-investigation-of-zynga-inc-2012-07-26 http://www.marketwatch.com/story/newman-ferrara-llp-announce...
cs702 14y ago
It's hard for me not to compare the likes of Mark Pincus, who has been 'taking money off the table' from Zynga since before the IPO, to old-fashioned owner-CEOs like Warren Buffett, who has never sold a single share of his company, Berkshire Hathaway.[1] [1] See http://www.berkshirehathaway.com/news/dec2799.html http://www.berkshirehathaway.com/news/dec2799.html . Buffett is donating almost all his shares in annual chunks to the Bill and Melinda Gates Foundation, and the remainder to a few, much smaller charitable foundations, so he will never personally cash out.
- lotharbot 14y ago
  For most investors, it's recommended that you minimize the amount of stock you own in your own company such that you reduce the risk of having both your job and your stock drop at the same time. When a company or industry gets hit hard, you often hear tales of people who lose their jobs and find their company stock has also tanked, and it's devastating. Whether you work for Zynga or Valve, I'd recommend taking money off the table and diversifying. Berkshire Hathaway is special in that it's a holding company with extremely diverse holdings. It is, in essence, already internally making the sort of investments that I would recommend others make externally. Point being, regardless of what you think of Pincus, he's doing what sensible investors should be doing at any company except for a Berkshire-type holding company.
  - runako 14y ago
    I generally agree with your comment, but this >> Berkshire Hathaway is special in that it's a holding company with extremely diverse holdings. was not true when Berkshire was as old as Zynga is today.
    - lotharbot 14y ago
      I guess the question is whether we're talking about B-H the textile company, or whether we're talking about Buffett's holdings in general. Buffett didn't have anything to do with the textile company when it was Zynga's age (5 years); B-H merged in 1955 and Buffett didn't start buying until 1962. He's actually called buying it his biggest investment mistake, as he chose not to sell the textile company over a perceived slight, but probably could have made a lot more with the money if he'd invested it in better industries. As for the holding company, Buffett started BPL in 1956, had several partnerships running by 1960, and merged them in 1962; at that point (a similar age to Zynga) the holdings were already quite diverse, just not under the B-H name. It wasn't until the late 1960s that he started using B-H as his general holding company. So, if we're going to hold up Buffett as an "old-school CEO" who doesn't sell shares of his own company, let's remember that he's called not selling B-H (textiles) his biggest investment mistake, and let's remember that it's different to hold on to stock in a diversified holdings company (whether it was called BPL or B-H at the time) than it is to hold on to stock in a single-purpose company.
mrgoldenbrown 14y ago
Pincus brags on camera about how he got started by putting malware on customer's computers. Why is it surprising that he would pull something shady now?
bkmrkr 14y ago
http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001439404&owner=include&count=40 http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&#3... http://www.sec.gov/Archives/edgar/data/1134069/000120919112022046/xslF345X03/doc4.xml http://www.sec.gov/Archives/edgar/data/1134069/0001209191120... ouch
brianjyee 14y ago
I'm in the "insider trading should be legal" camp.
RyanMcGreal 14y ago
Flagged as irresponsible linkbait. The article itself acknowledges that these people "only sold a fraction of their holdings, so they've been hammered along with the rest of Zynga shareholders by the subsequent collapse."
neurotech1 14y ago
This is ridiculous! Zynga is an over-inflated bubble stock, simple as that. Every Retail Investor/Stock Broker/Investment Advisor should always be watching what the Insiders do. If a CEO of a company dumps significant amounts of their stock holdings, watch out. It's as simple as that. If hypothetically, Larry Page & Sergey Brin sold off a large chunk of their stock, I'd be a sign to be careful of Google stock until the market reacts and the reasons are fully known.
joshu 14y ago
the VC insiders were likely going to sell based on the instructions of the LPs (either to distribute cash or stock) and not for any other reason...
ghshephard 14y ago
Because I have a friend working at Zynga, I'm sad that their stock is going down - but, given Zynga's business model of wholesale ripping off other people's game concepts, and slapping down their own art and calling it "new" (Dream Height versus Tiny Towers) - I'm actually pleased that their stock is taking a hit. I've even heard it rumored that Pincus actually _encourages_ his team to take other people's game concepts, and change the trade dress/graphics art and market it under the Zynga name, rather than investing in creating brand new game concepts. I worked at Netscape at the end when we decided to just wholesale clone Yahoo's portal, and create "Netscape.com" - people worked really hard, wall after wall was covered with mockups of Yahoo, and the equivalent netscape.com version - it was a thoroughly depressing place to work, and any engineer with a sense of self worth quickly departed. I'm not saying there isn't a business model there - I'm sure there is - it's just not one I would hope the best engineers would aspire to.
teeja 14y ago
Whenever I read about these things, the words "milking machine" come to mind. Get enough cows in the barn and turn 'em on.
mkramlich 14y ago
If one sells stock for $200m cash, like Pincus did in this case, arguably one would be immune from being "hammered" later on. Assuming he does reasonably safe/wise things with that cash.

136 points by larrys 14y ago

It is common for 100% of all shares of an IPO to come from insiders and VC firms? Or should at least some of it come from the company itself?

larrys 14y ago

"I know many of these folks personally, including at the company's underwriters, and like and respect them. I think the last thing they would intentionally do is unload stock when they thought it was about to crash--especially when the amount they made in the sale, though huge, is still relative chicken-feed for them. Also, all of these folks only sold a fraction of their holdings, so they've been hammered along with the rest of Zynga shareholders by the subsequent collapse." The above is of course what is "below the fold" and the "to be sure" statement that is supposed to inoculate against accusations of being misleading. But above the fold of course is the link bait title that draws you in and makes you think that something terribly wrong has happened with this cash out.[1] Missing of course is the amount of other stock or what their losses were. An alternative piece that could have been equally good bait would have been perhaps "Zynga insiders who took a bath when the stock crashed" with the "to be sure" as "they also cashed out a small percentage of their holdings ..." [1] Edit: I'm not making a judgement on whether what was done was wrong by the way I am only presenting my opinion on how this was written and an alternative version.

Evbn 14y ago
If it wer chicken feed, why would they bother selling? Note that their wealth that is tied up in zynga stock is not wealth if it destined to be worthless before liquidation.
samstave 14y ago
No matter what anyone says, to me, zynga is silicon valleys groupon. The worst company in the valley. I like seeing them fail.
- hkmurakami 14y ago
  The company does have honest employees, including designers and engineers (I know a few personally). Yes, it can be argued, "It's their fault for working at an evil company in the first place", but it's tough for me to see the 'regular folk' suffer as well :(
  - user49598 14y ago
    All companies, positive or negative, have some honest employees.
  - vtry 14y ago
    They are guilty for working for a evil company. Ignorance of the crime does not make you innocent.
    - hkmurakami 14y ago
      What if your company was acquired by them and you're in vesting period? Are engineers of the acquired company guilty of a career move that they had nothing to do with? (this is the exact situation my friends are in)
      - famousactress 14y ago
        Yes. You choose who you work for (before the acquisition and after), and stock options are a an understood risk. Let's not pretend otherwise.
      - jmount 14y ago
        Given Zynga's history they likely won't vest anyway (clawbacks).
      - samstave 14y ago
        Look how well that worked out for OMGPOPs CEO who came out in public making horrible statements of some of his employees. He deserved to be acquired by Pinchs and it showed his true colors. The day OMGPOP was acquired, I deleted draw something. I've played games my whole life, computer games are what got me into computers as my career, but I have never played a Zynga game and never will. I boycott everything the company does as a personal preference. I don't think all the employees are bad, but anyone who is blatantly working to do Pincus' theft of others' work certainly KNOW they are doing it and that's pretty shitty.
trance 14y ago
Naw, I like Henry's version better.
sajid 14y ago
It seems to me that insiders only dumped a fraction of their holdings because that's all they could get away with. If they could have dumped more, they would have.
zzzeek 14y ago
> Missing of course is the amount of other stock or what their losses were. why on earth would that matter ? How much money did Martha Stewart go to jail for ? If they recouped 1% of their losses via insider trading, that's...insider trading !

ChuckMcM 14y ago

The missing piece in this story is when the registration for this sale was put out. It isn't like you can just 'decide' to sell this many shares, my guess is that it is mentioned in the original prospectus somewhere that some point after the IPO these additional shares would be sold. That it occurred in the same quarter that the stock melted down means that they better have solid documentation and there are going to be lawyers sniffing around for a potential shareholder suit. If the paper trail is solid though no suit will materialize.

antr 14y ago
I sometimes wish that VCs had some legal responsibility when blogging about their portfolio companies too, specially when discussing valuations. They keep cheerleading on a clear conflict of interest, non-stop. Here is Fred Wilson: "Pandora is at ~$1.5bn. LinkedIn is at ~$6bn. Groupon is at ~$15bn, Zynga is at ~$7bn, and TripAdvisor is at ~$3.5bn. We can (and surely will in the comments) argue about these valuations. Some will say they are too high. Some will say they are too low. That's what makes a market. But in the aggregate, these valuations do not seem ridiculous to me. The public market investors are valuing these companies at prices that have some rationality to them." Source: http://www.avc.com/a_vc/2011/12/some-thoughts-on-the-ipo-market-for-web-companies.html http://www.avc.com/a_vc/2011/12/some-thoughts-on-the-ipo-mar... When he says "...these valuations do not seem ridiculous to me." he is implicitly saying that their is (fundamental value) upside to the stock. Not in a million years could Fred Wilson sustain such argument with numbers. Implied growth rates just to value Zynga at ~$7bn means double digit growth (revenue and cash flow) for years, AND even higher growth rates are required if IPO investors want a return on their investment. Unfortunately his audience buys into the hype, regardless of the real economic value behind the companies, and for him to keep doing this on a clear conflict of interest demonstrates his low moral standards. These actions should not go unpunished, and are no different to any other legal "issues" that lawyers might pick up from the Zynga prospectus.
- veyron 14y ago
  " They keep cheerleading on a clear conflict of interest, non-stop" That's their business model: they buy and then pump the companies in hopes that someone will buy stake from them at a higher valuation later. The nature of the VC model precludes multi-decade investments and incentivizes quick exits even if they blow up in others' faces FW replied to a similar remark i made: http://news.ycombinator.com/item?id=4068495 http://news.ycombinator.com/item?id=4068495

Judson 14y ago

Interesting to note that it was pretty well reported[0][1][2] that the bulk of this second Zynga offering would be for management and PE firms to get liquidity. This, though, is the money quote from the Reuters article that could have been a red flag (Though I'm honestly not sure how often it happens): "Zynga waived a lock-up arrangement to facilitate the offering. Investors are typically expected to wait about six months after an initial public offering to sell their shares." [0]:http://www.cnbc.com/id/46833267/Zynga_Shareholders_Selling_43_Million_Shares http://www.cnbc.com/id/46833267/Zynga_Shareholders_Selling_4... [1]:http://blogs.wsj.com/deals/2012/03/14/zynga-shareholders-to-sell-up-to-400m-in-shares/ http://blogs.wsj.com/deals/2012/03/14/zynga-shareholders-to-... [2]:http://www.reuters.com/article/2012/03/23/net-us-zynga-idUSBRE82K1BX20120323 http://www.reuters.com/article/2012/03/23/net-us-zynga-idUSB...

snorkel 14y ago

I suppose we should all be glad that some VCs were able hit a jackpot so soon, this is just what provides incentives for other VCs to keep investing in tech startups.

forgotAgain 14y ago
I disagree. If downstream investors decide that tech start-ups are a scam rather than a good investment the VC's will have no one to buy them out.
tatsuke95 14y ago
>"I suppose we should all be glad that some VCs were able hit a jackpot so soon, this is just what provides incentives for other VCs to keep investing in tech startups." If I said: I suppose we should all be glad that some mortgage brokers were able to hit the jackpot so soon, this is just what provides incentives for other mortgage brokers to keep pushing home loans on people. I'd be lynched. I agree it's a dog-eat-dog world, and that investors have to know what they are getting into when this stuff goes public. But the fact that VCs are pumping this crap up then dumping it on the public (who end up taking a bath) is not a positive development. It sucks, because for every Zynga (or pets.com, or webvan) there are 5 great companies that these VCs are supporting. But how can the public continue to trust this system? Fool me once...

vtry 14y ago

The investors should demand their money back.

corford 14y ago

From the article: "I think the last thing they would intentionally do is unload stock when they thought it was about to crash" It looks like at least one law firm disagrees: http://www.marketwatch.com/story/newman-ferrara-llp-announces-investigation-of-zynga-inc-2012-07-26 http://www.marketwatch.com/story/newman-ferrara-llp-announce...

cs702 14y ago

It's hard for me not to compare the likes of Mark Pincus, who has been 'taking money off the table' from Zynga since before the IPO, to old-fashioned owner-CEOs like Warren Buffett, who has never sold a single share of his company, Berkshire Hathaway.[1] [1] See http://www.berkshirehathaway.com/news/dec2799.html http://www.berkshirehathaway.com/news/dec2799.html . Buffett is donating almost all his shares in annual chunks to the Bill and Melinda Gates Foundation, and the remainder to a few, much smaller charitable foundations, so he will never personally cash out.

lotharbot 14y ago
For most investors, it's recommended that you minimize the amount of stock you own in your own company such that you reduce the risk of having both your job and your stock drop at the same time. When a company or industry gets hit hard, you often hear tales of people who lose their jobs and find their company stock has also tanked, and it's devastating. Whether you work for Zynga or Valve, I'd recommend taking money off the table and diversifying. Berkshire Hathaway is special in that it's a holding company with extremely diverse holdings. It is, in essence, already internally making the sort of investments that I would recommend others make externally. Point being, regardless of what you think of Pincus, he's doing what sensible investors should be doing at any company except for a Berkshire-type holding company.
- runako 14y ago
  I generally agree with your comment, but this >> Berkshire Hathaway is special in that it's a holding company with extremely diverse holdings. was not true when Berkshire was as old as Zynga is today.
  - lotharbot 14y ago
    I guess the question is whether we're talking about B-H the textile company, or whether we're talking about Buffett's holdings in general. Buffett didn't have anything to do with the textile company when it was Zynga's age (5 years); B-H merged in 1955 and Buffett didn't start buying until 1962. He's actually called buying it his biggest investment mistake, as he chose not to sell the textile company over a perceived slight, but probably could have made a lot more with the money if he'd invested it in better industries. As for the holding company, Buffett started BPL in 1956, had several partnerships running by 1960, and merged them in 1962; at that point (a similar age to Zynga) the holdings were already quite diverse, just not under the B-H name. It wasn't until the late 1960s that he started using B-H as his general holding company. So, if we're going to hold up Buffett as an "old-school CEO" who doesn't sell shares of his own company, let's remember that he's called not selling B-H (textiles) his biggest investment mistake, and let's remember that it's different to hold on to stock in a diversified holdings company (whether it was called BPL or B-H at the time) than it is to hold on to stock in a single-purpose company.

mrgoldenbrown 14y ago

Pincus brags on camera about how he got started by putting malware on customer's computers. Why is it surprising that he would pull something shady now?

bkmrkr 14y ago

http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001439404&owner=include&count=40 http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&#3... http://www.sec.gov/Archives/edgar/data/1134069/000120919112022046/xslF345X03/doc4.xml http://www.sec.gov/Archives/edgar/data/1134069/0001209191120... ouch

brianjyee 14y ago

I'm in the "insider trading should be legal" camp.

RyanMcGreal 14y ago

Flagged as irresponsible linkbait. The article itself acknowledges that these people "only sold a fraction of their holdings, so they've been hammered along with the rest of Zynga shareholders by the subsequent collapse."

neurotech1 14y ago

This is ridiculous! Zynga is an over-inflated bubble stock, simple as that. Every Retail Investor/Stock Broker/Investment Advisor should always be watching what the Insiders do. If a CEO of a company dumps significant amounts of their stock holdings, watch out. It's as simple as that. If hypothetically, Larry Page & Sergey Brin sold off a large chunk of their stock, I'd be a sign to be careful of Google stock until the market reacts and the reasons are fully known.

joshu 14y ago

the VC insiders were likely going to sell based on the instructions of the LPs (either to distribute cash or stock) and not for any other reason...

ghshephard 14y ago

Because I have a friend working at Zynga, I'm sad that their stock is going down - but, given Zynga's business model of wholesale ripping off other people's game concepts, and slapping down their own art and calling it "new" (Dream Height versus Tiny Towers) - I'm actually pleased that their stock is taking a hit. I've even heard it rumored that Pincus actually _encourages_ his team to take other people's game concepts, and change the trade dress/graphics art and market it under the Zynga name, rather than investing in creating brand new game concepts. I worked at Netscape at the end when we decided to just wholesale clone Yahoo's portal, and create "Netscape.com" - people worked really hard, wall after wall was covered with mockups of Yahoo, and the equivalent netscape.com version - it was a thoroughly depressing place to work, and any engineer with a sense of self worth quickly departed. I'm not saying there isn't a business model there - I'm sure there is - it's just not one I would hope the best engineers would aspire to.

teeja 14y ago

Whenever I read about these things, the words "milking machine" come to mind. Get enough cows in the barn and turn 'em on.

mkramlich 14y ago

If one sells stock for $200m cash, like Pincus did in this case, arguably one would be immune from being "hammered" later on. Assuming he does reasonably safe/wise things with that cash.