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Is M-1 a scam?

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Sam_Rothstein

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Let’s ignore for a moment that M-1’s main financial backer Michael Baybak is part of a religion that has a reputation for bilking it’s members of all their money. I’m not the religion expert, so I’ll let Jake deal with that specific issue. What I do want to talk about is how this guy also has a reputation for artificially boosting his stocks and then selling as soon as they’re high:



Neither man agreed to be interviewed for this story, yet both threatened legal action through attorneys. “What these guys do is take over companies, hype the stock, sell their shares, and then there’s nothing left,” says John Campbell, a former securities lawyer who was a director of mining company Athena Gold until Baybak and Gerbino took it over.


click here for article

Post #1   10/24/07 5:23:22AM   

TNunley

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Nice find... definitely interesting that one of the guys involved had an article written about him in Time magazine about scams.

Post #2   10/24/07 9:08:44AM   

Rich78

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While I wouldn't go as far as to call it a 'scam', the involvement of this dude certainly doesn't do the organisation any favours.

Post #3   10/24/07 9:12:47AM   

snakeplissken

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Wouldn't that be ironic... If M1 fell apart before it started and then Fedor went crawling back to the UFC. Randy would want back in, and then what bargaining power would he have? They'd have him over a barrel.

Intresting days ahead me thinks.

Post #4   10/24/07 11:04:25AM   

gspgnp

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What I do want to talk about is how this guy also has a reputation for artificially boosting his stocks and then selling as soon as they’re high.

Isn't that what every single rational capitalist would do? Seems pretty profitable and logical to me. Don't give me this 'insider trading is illegal' argument either because every one does it. If they own shares in the company why wouldn't they want to boost the value of the stock and sell it. You don't make money by keeping your stock when it is high and waiting for the price to drop or by being moral and doing the right thing...i.e. 'not participating in insider trading'

Post #5   10/24/07 2:37:59PM   

TNunley

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Posted by gspgnp

What I do want to talk about is how this guy also has a reputation for artificially boosting his stocks and then selling as soon as they’re high.

Isn't that what every single rational capitalist would do? Seems pretty profitable and logical to me. Don't give me this 'insider trading is illegal' argument either because every one does it. If they own shares in the company why wouldn't they want to boost the value of the stock and sell it. You don't make money by keeping your stock when it is high and waiting for the price to drop or by being moral and doing the right thing...i.e. 'not participating in insider trading'



Did you ever watch Boiler Room?

BTW Insider trading is illegal...

And irregardless of if "everyone does it" or not... if he's one of the few backing the organization, then what is to stop him from doing it this time? What's to stop him from bankrupting the company into not being able to afford the fighters... Boy that would prove Dana's point right there wouldn't it? "See guys, this is why I can't afford to pay my fighters millions... we'd go bankrupt!"

Post #6   10/24/07 2:54:53PM   

Darnok

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Maybe they are trying to make M-1 worth billions (artificially) and then try and sell it to the UFC.

Post #7   10/24/07 3:13:16PM   

TNunley

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Posted by Darnok

Maybe they are trying to make M-1 worth billions (artificially) and then try and sell it to the UFC.





BTW... ya know what M-1 rhymes with???

Enron!

Ok, well if you hold your tongue while saying them they rhyme.

Post #8   10/24/07 3:16:02PM   

gspgnp

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Posted by TNunley

Did you ever watch Boiler Room?

BTW Insider trading is illegal...

And irregardless of if "everyone does it" or not... if he's one of the few backing the organization, then what is to stop him from doing it this time? What's to stop him from bankrupting the company into not being able to afford the fighters... Boy that would prove Dana's point right there wouldn't it? "See guys, this is why I can't afford to pay my fighters millions... we'd go bankrupt!"



Boiler Room is a great movie and I own it as a matter of fact.

There is nothing that will stop him from doing it this time. That's my point. All I'm trying to say is that raising the price of stock is any CEO or Board's main objective. If you own stock in it and sell it when you feel the stock has peaked, it is only logical. In other words, it means that M-1, even with this guys participation will not be a scam. It will act as any rational business would, in it's own self interest (the owners of M-1's interests, not necessarily the company's best interest). If that means folding the company then so be it. Don't think for a second that if the UFC became an unprofitable venture, that they would keep it going for the good of MMA. The Fertittas would pull the plug even if profit rates began to fall too much. There are other places they could invest in the economy.

Post #9   10/24/07 3:21:02PM   

TNunley

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Posted by gspgnp
Boiler Room is a great movie and I own it as a matter of fact.

There is nothing that will stop him from doing it this time. That's my point. All I'm trying to say is that raising the price of stock is any CEO or Board's main objective. If you own stock in it and sell it when you feel the stock has peaked, it is only logical. In other words, it means that M-1, even with this guys participation will not be a scam. It will act as any rational business would, in it's own self interest (the owners of M-1's interests, not necessarily the company's best interest). If that means folding the company then so be it. Don't think for a second that if the UFC became an unprofitable venture, that they would keep it going for the good of MMA. The Fertittas would pull the plug even if profit rates began to fall too much. There are other places they could invest in the economy.


I see your point man... I was just giving you a hard time (Hence the mention of insider trading being illegal). I agree, what's going to happen will happen. I was just meaning it as he doesn't seem like someone you'd want to get involved in business with if you wanted to really develop something that you could build, instead of just making the quick buck (or 10 billion). This is definitely something that has made me care less about M-1 though. If it isn't going to be there in 2 years, why bother?

Post #10   10/24/07 3:46:18PM   

Sam_Rothstein

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Posted by TNunley
Boy that would prove Dana's point right there wouldn't it? "See guys, this is why I can't afford to pay my fighters millions... we'd go bankrupt!"




elite xc paid almost $1 million to brock lesnar and royce gracie for fighting on their first ppv

they have the money to spend to get these guys good money, but they are using that money to go back into advertisement so ufc becomes a world wide name

so they can spend millions of dollars trying to get ufc promotion in mexico and canada and such

Post #11   10/24/07 5:13:06PM   

GrandMaster313

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maybe this is why dana isn't worried, because the M-1 company is being financed by a con artist

Post #12   10/24/07 6:48:13PM   

wolfgarnaud

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i dont know... for sure we dont really know anything from this guys... but if this people signed Fedor... theres got to be something....

Post #13   10/29/07 4:57:28AM   

EliasG

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That's ridiculous. Even if M-1 fell apart a year or two from now, Randy and Fedor could fight. You mean to tell me that a guy like Don King wouldn't step in and hype the heck out of a fight he KNEW would make money? Yeah someone could make that happen, even if the MMA promoters are too poor or too shortsighted to make it happen.

Post #14   10/29/07 6:31:11PM