Wednesday, January 25, 2006

Pastor Urges Followers To Securities Fraud

A pastor who has threatened a boycott of Microsoft has apparently taken another tact - he wants his followers to buy up Microsoft's stock and then dump it on May 1.

I can't imagine what this guy is thinking. Microsoft has a market cap of 280 BILLION DOLLARS. It trades an average of 60 MILLION shares a day, has 10 BILLION shares outstanding. Not to mention that over 60% of its float is held by insiders and institutions.

But the good reverend has got this all figured out. He wants everyone to buy one or two shares, and then dump them on May 1, to drive the price down, presumably to punish Microsoft for not caving to his demands.

Lets see, he will need to have his followers sell something like 30 million shares on May 1. If each of his followers buy 2 shares...are there that many people in the entire state of Washington?

And what happens on May 2, assuming this happens? If the stock moves at all, it undoubtedly pops right back up.

Has anyone taken a look to see if the pastor has a position in the stock?

And didn't he just attempt to conspire to violate the securities laws?
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