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Master-class in security analysis from Lauer
Posted: Friday, August 12, 2011

Posted: 1/26/2005 9:30:19 AM

By: j - Strong call for default judgement by SEC

DE # 738. Alleging numerous violations by Lauer of court orders relating to attendance at deposition takings, document production, answers to interrogatories etc; plus misrepresentations to the court, lying about his assets & violations of the asset freeze.

Internal Administrator
Posted: Friday, August 12, 2011
Joined: 10/12/2010
Posts: 5779

Posted: 1/25/2005 10:37:47 AM

By: jurisper

Lauer recently filed a motion to stop the Lancer receiver selling Zi Corp stock (DE #733 in sth Florida 03-80612).

It's a rather breath-taking insight into the analytical nous of a man supposedly sophisticated investors were happy to throw hundreds of millions of dollars at, apparently uncorncerned by little technicalities like what was actually in his portfolios.

Even without knowing anything much about the company or the stock, it should be quite apparent that Lauer isn't what you would call a value investor, or one overly wedded to traditional precepts of financial analysis.

You wouldn't find many managers willing to stick their neck out on a $1.7bn+ market cap target for 2006, for the no. 2 player in a segment probably worth less than $100mn per annum.

(Zi is certainly the main remaining value in the Lancer portfolios. Through last year the receiver's fund manger was estimating the NAV of the portfolios in the range of $40-60mn, generally somewhat less than the market value of Lancer's Zi holding at the time. Recently Zi has rocketed, and Lancer's stake is now worth in excess of $100mn; hence no doubt the receiver's decision to start selling it.)

The bigger question remains: why, exactly, were large investors willing to place money in Lancer? Did anybody get kick-backs? Will anything happen to them if they did?


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