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March 31, 2006

The Trouble with April Fool's Day

April Fool's Day is irritating. Among many other things, most ploys are neither plausible nor funny. It has become systematized and silly, and even advocates would be better off giving it a rest for a year or three.

The preceding said, I did find funny this line from Google's faux announcement today of Google Romance:
"Our internal projections say Contextual Dating is going to be unbelievably huge, just a total cash cow," said Google CEO Eric Schmidt in prepared remarks placed into the notes section of an executive PowerPoint presentation and intended solely for internal use but promptly leaked onto the web and then roundly mocked on Digg and Slashdot.

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Comments

How about Motley Fool! Latest posting by Patrick Byrne there (Appologies if this has already been touched upon):

Since I believe this place has been corrupted and lost its value, I think I will be done with it. In parting, let me fill in a few squares for the honest people here. You will be reading this in the news months or years from now: remember, you read it here first.

Herb is denying that he got access to the Gradient reports for two to four weeks after they had published. But on February 14, 2005 he wrote a report on NFI that quoted extensively from a Gradient report released hours earlier. The truth is, at least until recently Herb had a log-on and password at Gradient just like any client. This will come out in discovery. (Want his password?)

Gradient's shill Karen Hilton cannot make up her mind whether SAC ordered the report in question or not. This situation is so non-unique, the only question will be which of dozens if not hundreds of examples we or Biovail wish to present to our respective juries. I can line up hedge funds who will say that, Yes, we paid our money and for that we could order two hatchet jobs per year. the notion that Gradient did anything on their own is absurd: many of their "analysts" were hired straight out of Burger King. They were recent college grads who had never held a professional job before, and the content of the reports was largely dictated to them. After hearing stories from the eight witnesses I think Gradient's assertion that these were self-generated will be as laughable to the public as it is now to the witnesses.

Gradient had an employee answering one phone on his desk, "Gradient Research," and another on his desk, "Pinnacle Investments." They were trading on Pinnacle's behalf out of Gradient's office (eventually it got moved across the hall). A screenshot of Pinnacle reveals their positions were simply front-running Gradient's research.

Cramer is saying that he never heard of Gradient until he got subpoenaed. Becky Quick goes on the set every morning and says nothing. He is lying, as is she (by omission). The truth is, communications exist between Becky Quick and Gradient saying things like, "Jim Cramer loves the Gradient hatchet jobs." "Cramer is having CEO XYZ on and says to get him the latest Gradient stuff on them." Etc. These date from over a year ago. I believe emails still exist on CNBC computers confirming this. If CNBC investigates they will discover that Cramer was lying repeatedly to his audience and that Becky kept her mouth shut: presumably they would have to fire at least Cramer if this happens. If they do not investigate, then when these emails are made public and the world knows that CNBC was informed of this (through this post) and chose not to investigate, it will be the end of CNBC as a news organization.

Cramer and TSCM received subpoenas on February 7-9. Cramer told the world about it on February 27th. Between those two dates Cramer and the top three execs at TSCM sold $6 million of stock. Cramer had never sold TSCM stock before. He did these sales pursuant to a 10b5 plan so they show up as, "planned sales." He filed his plan on February 14th.

These are just a handful of the nuggets that are going to come out in discovery and trial. These guys can throw all the whitewash they want at this, they can send all the shills on TV that they want to, they can clog message boards and so on, but they cannot change trading records, emails, phone bills, and reports (especially when they already know that the good guys have many of them, and they don't know which they can shred).

As I sign off, I see that my last poll shows that 36% of Fools agree that Fool has become corrupted. I sadly agree.

Good-bye.

Patrick

Personally I think you missed your chance. Your cynical reputation could have left your first paragraph in tact, and then you could have really got us.