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-Signs, Portents, and the Weather-
On a roll! High school principal-owned New Jersey deli with $112M valuation despite making just $22k in revenue is revealed to be Wolf of Wall St-style shell company after baffling stock market for months
2021-06-03
[Daily Mail, where America gets its news]
  • New York Magazine article reveals the mechanics behind deli's stunning rise

  • Your Hometown Deli in Paulsboro, New Jersey hit a $113 million market cap

  • Observers were baffled by valuation of the company with $13,976 in revenue

  • Deli was jointly owned by high school wrestling coach and math teacher

  • Now it is revealed Hong Kong hedge fund Maso Capital Partners took a stake

  • They plan to use the deli as a shell company to take a foreign company public

  • Trades between the parties to the deal drove up the closely-held stock

  • Fund manager David Einhorn said the case showed 'quasi-anarchy' in markets

Now a popular fad on major stock exchanges, reverse mergers with special purpose acquisition companies, or SPACs, allow a private company to go public without the intense scrutiny and disclosure requirements of a traditional initial public offering.
Posted by:Skidmark

#7  SPACs are scams. Blank-check BS redux... all designed to skirt the laws re disclosures and Safe Harbor

The SEC's new chief and Congress are going to crack down on them soon, but millions of people been defrauded already. What a sick, sad, foreseeable spectacle.

Part of what the great Wall Street short seller Jim Chanos calls "the Golden Age of Fraud"
Posted by: Woozle Smiter of the Ostrogoths9972   2021-06-03 22:19  

#6  You eventually wind up with so many rules nobody knows them all and they can be twisted like spaghetti by sharpers.

You ought to teach Organizational Behaviour classes somewhere. This is precisely why large corporations tend to stall out at some point.
Posted by: Raj   2021-06-03 18:13  

#5  ^ Until you make the prospect of getting caught itself a nightmare, all you get is a bloated system of checks and balances.
Posted by: Dron66046   2021-06-03 15:39  

#4  You make a rule. Someone finds a way around it. You plug that loophole. Someone finds another. You eventually wind up with so many rules nobody knows them all and they can be twisted like spaghetti by sharpers.
Posted by: M. Murcek   2021-06-03 15:26  

#3  Yes, a portent of further market manipulation.
Posted by: Skidmark   2021-06-03 13:35  

#2  Reading the article, it sounds like this is on the edge of legal — having attracted the SEC’s attention from the beginning.

Skidmark, did you put this under Signs, Portents, and the Weather because the Hong Kong connection suggests the thin edge of the Communist Chinese wedge?
Posted by: trailing wife   2021-06-03 13:00  

#1  Fuggedda 'bout it!
Posted by: Warthog   2021-06-03 11:29  

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