Tuesday, September 25, 2012

A Dirty Insiders Playbook + 3 New Equity Targets ($YUM, $SBAC, $SBC)

It is my opinion that that things like Hedge Funds CDS, Mortgaged backed securities, and worthless debt obligations like student loans are actually structured and held corporate balance sheets, unbeknownst to most.  The Banks, Hedge Funds, and Corporate Insiders I believe, work in concert on a mutually beneficial level, for the purpose of rigging the game.

This is how it tends to look;

1.  A group of hedge funds all purchase equity interests in a listed company.

2.  The hedge funds elect new board of directors

3.  The directors replace management with someone of low moral regard who has a fetish for excessive leverage. 

4.  Banks extend a line of credit to the company

5.  Company starts aggressively making asset purchases and entering into agreements (Land/Coal/Trees/Rights, etc), with either third parties or entities controlled by insiders themselves.