Friday, March 02, 2007

Closing the NovaStar Barn Door in happier days

There's an old expression, "closing the barn door after the cows have left." That same principle was applied today to the "" website, which was created by naked-shorting fruitcake Phil Saunders (a/k/a "Bob O'Brien) to pump the doggie subprime lender NovaStar Financial.

NovaStar's shares have collapsed over the past couple of weeks, leaving egg over Saunders's face as the No. 1 pumper of NovaStar shares. hacked away at the crackpot theory that NovaStar was a victim of "stock counterfeiting" or "naked short-selling," and not its own doggy fundamentals. It was festooned with such nonsense, as was the NovaStar Investor Village message board.

Saunders was pumping away with drivel like this right up to the moment NovaStar fell off a cliff. The one I just linked, posted a few days before the disaster, was typical: "Is there any reason in the fundamentals to doubt the company paying $5.60 this year? Nope. Next year? Nope. Has there been any reason to doubt their ability for the last 4 years? Nope. History has shown that all the big drops were NOT based in any fundamental problem. Not once. It has always been based upon FUD distributed via media campaigns, class action suits, analysts, and message boards. Always. As in every single time to date."

So now, applying the "belated closing of barn door" principle, Saunders's has been shut after the naive investors have been fleeced. Today if you clicked on the link, you got a black screen with "" in small type.

As usual when caught with his pants down, Saunders has resorted to covering his tracks and blaming the media.

Before it was shut I saved's pumping for posterity, and I am sure that regulators and class-action lawyers have as well.

People interested in the same MAD Magazine approach to the stock market (albeit meant to be taken seriously) should log on to Saunders's other website, ironically called "" It's been a bit lame recently, and its audience has dribbled off. I wonder when that one goes black?

© 2007 Gary Weiss. All rights reserved.

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