Chasing Value: MBIA earnings, stock and litigation up

I know a rat when I see it--or him...and the attempted--and sometimes actual--manipuilation of stocks is a sad commentary on the free market system. Most "novice investors" want the stock to increase in value. It is a horrible commentary on how the system really works when some are doing all they can to make the stock go downfor their own self-interests; forgetting about the employees, customers, and stockholders of that company. What Bill Ackman did is WORSE than any insider trading.

Why exactly is it wrong to benefit from a correct call? Should analysts/IBs also not be allowed to write positive things about stocks they own? Was Ackman right or not?

ranger,

There is nothing wrong with benefittng from a correct call. There is something wrong with a window contractor throwing rocks through peoples windows.

The reason I suggested it was time to buy was I felt the stock had value and was down more than it should be from a value perspective.

I do not entirely disagree with you...and since I own MBI, which I disclosed, I will benefit if it goes up, but my suggestion to look at the stock is way different than Mr. Ackmans yelling fire and starting a stampede trampling people all over and greatly contributing to the problems for the company and causing it to perhaps overshoot the mark.

All I said is the case may have some merit.

What right did Municipal Bond Insurers have to get into insuring in the mortgage market without first asking their stockholders for approval

Kurt,

Good question...
It was a bad idea to get into subprime loans, that's for sure, but a company has every right to expand into new markets or lines of business.

Apple entered the phone business and the music business. GE the maker of appliances, generators and aircraft engines decided to enter the movie business. Shareholder approval is not required.