The Steve Madden Counter Example: 1 From The Archive
The stock inwards the Wolf of Wall Street (Steve Madden Shoes) has been a xxx bagger. It is equally good a challenge to the Bronte describe concern model.
I blogged almost it a far-flung outpost of Steve Madden Shoes - a reminder of the risks inwards my business.
I blogged almost it a far-flung outpost of Steve Madden Shoes - a reminder of the risks inwards my business.
I brusk stocks - together with whilst I carefully examine the accounts together with sometimes fifty-fifty stake out factories - to a greater extent than ofttimes than non I respect shorts based on people. Brokers together with stock promoters amongst a history of fraud involvement me. Lawyers are my favorite of all scumbags because about create the documentation for fraud later fraud later fraud together with lawyers seldom larn pinged. Stock promoters come-and-go. Lawyers are eternal!
I volition brusk a stock (in real minor quantity) based on an association amongst i suspect lawyer together with i suspect promoter. I read the accounts if the stock goes against me - together with depending on what I respect I either growth my seat or cover. If the stock only goes downwards (which it ofttimes does) I only accept the profits together with want I had shorted more.
When i goes against me I intend - notwithstanding over again - of Steve Madden together with his tarty shoe company. Steve Madden is my eternal nightmare.
But for that y'all postulate about background
Stratton Oakmont together with Steve Madden
Stratton Oakmont was arguably the most fraudulent stockbroker ever to operate inwards the United States. Its founder (who went to prison) wrote almost it inwards agreeable foremost person: The Wolf of Wall Street is a tale of high degree hookers (known equally "Blue Chips"), Quaaludes and stock fraud.
Every stock taken world past times Stratton was a disaster together with a fabulous short. They all crashed together with burned. Every stock that is except one.
The except i is Steve Madden Shoes (SHOO:Nasdaq). And fifty-fifty that was a close-run thing.
Steve Madden was a small-time shoe designer going nowhere together with frustrated amongst his lot working for larger shoe companies. He struck out on his own.
But he had no coin - together with thence - inwards the non bad tradition of America - he went cap-in-hand to Wall Street. [In Steve Madden's example it was in all likelihood cap on his head... but y'all larn the idea...]
But Steve did non only larn to Wall Street, he went to his childhood friend Danny Porush.
Danny was senior at Oakmont Stratton together with Steve Madden shoes was dressed upwardly inwards classic Stratton fashion. In other words the companionship was over-promoted (even fraudulently promoted) together with the stock was manipulated. Hashemite Kingdom of Jordan Belfort (the CEO of Stratton) had large undisclosed positions (he admits this inwards his book) together with was actively involved inwards the manipulation of the stock.
Eventually the manipulation system comes crashing down. Steve Madden is charged amongst stock fraud together with pleads guilty. He went to prison.
Something foreign happens on the means to the stock manipulation
Usually this is the profitable halt of a fraud-short. Usually, but non always.
Something foreign happened on the means to the stock fraud. That something was Steve Madden. Madden e'er was first-and-foremost a shoe designer together with an outrageous together with outrageously successful one. Even past times the fourth dimension Madden was charged Steve Madden Shoes was on its means to beingness the most successful high-heel shoe companionship inwards the world. Teenage girls only love him.
And Madden - while ago (repeated below). There is a correction at the end:
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Steve Madden - the designer of the ridiculous high-heeled shoes love past times teenage tarts - gives me nightmares.
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Steve Madden - the designer of the ridiculous high-heeled shoes love past times teenage tarts - gives me nightmares.
And every fourth dimension I larn to my purpose inwards Bondi Junction (Sydney, Australia) I locomote past times - at the entry lobby - a far-flung outpost of Steve Madden Shoes - a reminder of the risks inwards my business.
I brusk stocks - together with whilst I carefully examine the accounts together with sometimes fifty-fifty stake out factories - to a greater extent than ofttimes than non I respect shorts based on people. Brokers together with stock promoters amongst a history of fraud involvement me. Lawyers are my favorite of all scumbags because about create the documentation for fraud later fraud later fraud together with lawyers seldom larn pinged. Stock promoters come-and-go. Lawyers are eternal!
I volition brusk a stock (in real minor quantity) based on an association amongst i suspect lawyer together with i suspect promoter. I read the accounts if the stock goes against me - together with depending on what I respect I either growth my seat or cover. If the stock only goes downwards (which it ofttimes does) I only accept the profits together with want I had shorted more.
When i goes against me I intend - notwithstanding over again - of Steve Madden together with his tarty shoe company. Steve Madden is my eternal nightmare.
But for that y'all postulate about background
Stratton Oakmont together with Steve Madden
Stratton Oakmont was arguably the most fraudulent stockbroker ever to operate inwards the United States. Its founder (who went to prison) wrote almost it inwards agreeable foremost person: The Wolf of Wall Street is a tale of high degree hookers (known equally "Blue Chips"), Quaaludes and stock fraud.
Every stock taken world past times Stratton was a disaster together with a fabulous short. They all crashed together with burned. Every stock that is except one.
The except i is Steve Madden Shoes (SHOO:Nasdaq). And fifty-fifty that was a close-run thing.
Steve Madden was a small-time shoe designer going nowhere together with frustrated amongst his lot working for larger shoe companies. He struck out on his own.
But he had no coin - together with thence - inwards the non bad tradition of America - he went cap-in-hand to Wall Street. [In Steve Madden's example it was in all likelihood cap on his head... but y'all larn the idea...]
But Steve did non only larn to Wall Street, he went to his childhood friend Danny Porush.
Danny was senior at Oakmont Stratton together with Steve Madden shoes was dressed upwardly inwards classic Stratton fashion. In other words the companionship was over-promoted (even fraudulently promoted) together with the stock was manipulated. Hashemite Kingdom of Jordan Belfort (the CEO of Stratton) had large undisclosed positions (he admits this inwards his book) together with was actively involved inwards the manipulation of the stock.
Eventually the manipulation system comes crashing down. Steve Madden is charged amongst stock fraud together with pleads guilty. He went to prison.
Something foreign happens on the means to the stock manipulation
Usually this is the profitable halt of a fraud-short. Usually, but non always.
Something foreign happened on the means to the stock fraud. That something was Steve Madden. Madden e'er was first-and-foremost a shoe designer together with an outrageous together with outrageously successful one. Even past times the fourth dimension Madden was charged Steve Madden Shoes was on its means to beingness the most successful high-heel shoe companionship inwards the world. Teenage girls only love him.
And Madden - from prison theatre - retained his purpose equally pattern guru for the company. Beyond prison theatre he is dorsum inwards the saddle - together with the success continues. The stock goes upwardly because Steve Madden is skillful at what he does. The stock is a 25 bagger.
This is a lesson to me
I run across fraud inwards accounts regularly enough. There is no problem finding fraudulent companies together with if y'all picked Steve Madden equally a brusk y'all had indeed flora a fraudulent company.
But it hardly helps. The coin raised past times stock fraud at the outset of Steve Madden Shoes nourished the growth of a really successful (and valuable) business.
Shorts - together with at that spot were plenty of shorts - had a actually bad fourth dimension amongst this one.
Every companionship I brusk I receive got to enquire myself - fifty-fifty if I am certain this is dodgy - how create I know I create non receive got the side past times side Steve Madden? To me that is the materials of nightmares.
And hither - only to rub it inwards - is a motion-picture exhibit of Steve Madden amongst Katy Perry. Not only did he larn the loot - but he seems to receive got got the girls equally well.
As a short-seller photos similar that only rub tabular array salt into wounds.
John
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The promised correction: I receive got directly been followed on Twitter past times Wendy Madden, Steve's married adult woman together with the woman parent of his children. He seems to receive got got the girl, but it wasn't Katy Perry.
Often I await at my short-book, a collection of scum, vile together with villainy. And I wonder if nether it all at that spot is i or 2 decent people, about other Steve Madden. I gauge at that spot is - but I volition receive got to lose 5 times the initial stake on i or 2 shorts to respect out.
As an investor y'all tin hold upwardly incorrect inwards ways y'all never imagined. As a portfolio managing director y'all receive got to let for it.
J
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The promised correction: I receive got directly been followed on Twitter past times Wendy Madden, Steve's married adult woman together with the woman parent of his children. He seems to receive got got the girl, but it wasn't Katy Perry.
Often I await at my short-book, a collection of scum, vile together with villainy. And I wonder if nether it all at that spot is i or 2 decent people, about other Steve Madden. I gauge at that spot is - but I volition receive got to lose 5 times the initial stake on i or 2 shorts to respect out.
As an investor y'all tin hold upwardly incorrect inwards ways y'all never imagined. As a portfolio managing director y'all receive got to let for it.
J
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