Thursday, July 19, 2007

Another Naked Shorting Poster Child Sucks Wind

It's called Pegasus Wireless, and it is an OTC fly speck that has sucked in a surprisingly large number of naive investors. Seth Jayson of the Motley Fool reports that "the Pegasus 'plant' in Freeport [Bahamas] has neither phone service nor electricity, and no one at the plant knows where CEO Jasper "Jay" Knabb is."

Too bad. I preferred Knabb when he was braying about his brave fight against the evil-doers:

"The fight is just beginning," Knabb said in an interview [in September 2006]. "But I can't win a battle in this market when no one is willing to help us."

Barron's was less sympathetic in an article shortly before that.

Elsewhere on the baloney front: Overstock.com Patrick Byrne will be pleased to know that he has the firm support of Richard Altomare, CEO of Universal Express, in his junk lawsuit against the prime brokers. Makes me wonder if that support will continue if Altomare is jailed, as the SEC has sought.

Knabb, Byrne and Altomare: Does the phrase "three stooges" come to mind?

© 2007 Gary Weiss. All rights reserved.

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Wall Street Versus America was published by Penguin USA on April 6.
Click here for its Amazon.com listing and here for more information on the book, from my web site, gary-weiss.com.

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