Monster, Palm and three other tech companies own $856 million in paper no one wants to buy - Valleywag Comments

Monster, Palm and three other tech companies own $856 million in paper no one wants to buy

matto — Fri, 28 Mar 2008 14:46:05 PDT

@OaklandTechie: Don't be a hater! Would you like more Naked Jesus jpegs?

matto

Monster, Palm and three other tech companies own $856 million in paper no one wants to buy

OaklandTechie — Fri, 28 Mar 2008 13:54:09 PDT

@matto: Heh heh. You said "arse".

(just trying to bring this intelligent discourse back down to the Melissa Gira Grant level)

OaklandTechie

Monster, Palm and three other tech companies own $856 million in paper no one wants to buy

ScalaWag — Fri, 28 Mar 2008 13:52:22 PDT

@OaklandTechie: Good sales job on CFOs with heads up their ARSes.

ScalaWag

Monster, Palm and three other tech companies own $856 million in paper no one wants to buy

abmw — Fri, 28 Mar 2008 13:41:02 PDT

If an ASR becomes temporarily illiquid, the penalty rate goes up to a very high return. It can work to the holder's advantage if the real meltdown is averted. Some of the penalty rates are as high as 15%. Of course, if enough of the assets are tied up, those higher penalty rates can accelerate Armageddon.

abmw

Monster, Palm and three other tech companies own $856 million in paper no one wants to buy

matto — Fri, 28 Mar 2008 13:34:45 PDT

@OaklandTechie: I think there are some pending lawsuits over ARSes being represented as much more liquid than they actually were. So at this point, its stupid startups vs. sleazy investment bankers.

matto

Monster, Palm and three other tech companies own $856 million in paper no one wants to buy

OaklandTechie — Fri, 28 Mar 2008 12:50:59 PDT

Why the hell would startups put their seed money into ARSes? Wouldn't they need it for operations? What a stupid, risky move.

Clever management of your current assets is something any CFO worth their title does, but you have to make sure you are moving the cash into the right properties, and you have to make sure it doesn't affect your liquidity. I expect to see some CFO heads rolling if this really becomes the next credit gate.

OaklandTechie

Monster, Palm and three other tech companies own $856 million in paper no one wants to buy

matto — Fri, 28 Mar 2008 11:21:31 PDT

The guys at [dealbreaker.com] seem to think ARS will be the next implosion.

matto

Monster, Palm and three other tech companies own $856 million in paper no one wants to buy

Fidel on the Roof — Fri, 28 Mar 2008 11:07:49 PDT

Save for intuit, do you see a pattern with those other companies?

Fidel on the Roof

Monster, Palm and three other tech companies own $856 million in paper no one wants to buy

Blackjack — Fri, 28 Mar 2008 10:48:51 PDT

@scalawag: Face PALM!

Blackjack

Monster, Palm and three other tech companies own $856 million in paper no one wants to buy

ScalaWag — Fri, 28 Mar 2008 09:55:09 PDT

Monstrous FAIL!

ScalaWag

Monster, Palm and three other tech companies own $856 million in paper no one wants to buy

sample032 — Fri, 28 Mar 2008 08:20:07 PDT

Arrington reported that startups also have a lot of money in auction rate securities. Gawker pay critic and Seeking Alpha writer Felix Salmon stepped up and said not to worry, Arrington reported the worst case, and things "going to be fine."

Not sure if that holds for Monster, Palm, and others.

sample032