Comments on: Seth Klarman’s Baupost Group Goes Crazy for SPACs and Sallie Mae http://enlightened-american.com/2008/02/14/seth-klarmans-baupost-group-goes-crazy-for-spacs-and-sallie-mae One person's quest to make sense of a senseless American economy and society. Sun, 08 Jan 2012 12:07:34 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Davy Bui http://enlightened-american.com/2008/02/14/seth-klarmans-baupost-group-goes-crazy-for-spacs-and-sallie-mae/comment-page-1#comment-11588 Davy Bui Tue, 21 Apr 2009 15:06:11 +0000 http://enlightened-american.com/blog/?p=98#comment-11588 I'm aware SPACs are required to return cash to shareholders in the event they fail to complete a transaction. You're commenting on a post over a year after the fact, mate. At the time of the posts, the SPACS weren't selling at massive discounts. And yes, there's a chance management may make ill-considered mergers. Unless you have a large enough stake and/or communication w/ other shareholders, you can't be assured your money will be returned to you if management wants to overpay for companies, which in Feb 2008 w/ the Dow @ 14,000 was a possibility. BTW, when Charlie Munger asked Warren Buffett for investment advice, Buffett replied "Coattail -- you got to coattail." Enlightened American actually is an oxymoron, mate. I’m aware SPACs are required to return cash to shareholders in the event they fail to complete a transaction.

You’re commenting on a post over a year after the fact, mate. At the time of the posts, the SPACS weren’t selling at massive discounts.

And yes, there’s a chance management may make ill-considered mergers. Unless you have a large enough stake and/or communication w/ other shareholders, you can’t be assured your money will be returned to you if management wants to overpay for companies, which in Feb 2008 w/ the Dow @ 14,000 was a possibility.

BTW, when Charlie Munger asked Warren Buffett for investment advice, Buffett replied “Coattail — you got to coattail.”

Enlightened American actually is an oxymoron, mate.

]]> By: blacknag http://enlightened-american.com/2008/02/14/seth-klarmans-baupost-group-goes-crazy-for-spacs-and-sallie-mae/comment-page-1#comment-11559 blacknag Tue, 21 Apr 2009 09:58:14 +0000 http://enlightened-american.com/blog/?p=98#comment-11559 As a follow-up = think for yourself and don't ride others coat tails! As a follow-up = think for yourself and don’t ride others coat tails!

]]> By: blacknag http://enlightened-american.com/2008/02/14/seth-klarmans-baupost-group-goes-crazy-for-spacs-and-sallie-mae/comment-page-1#comment-11558 blacknag Tue, 21 Apr 2009 09:57:09 +0000 http://enlightened-american.com/blog/?p=98#comment-11558 You ain't too smart mate. He is not buying SPACs for the management - all of the SPACs he is buying trade below cash with the potential catalyst that their mandates (read their prospectuses) state that if they have not completed a reverse merger transaction - they must return the cash to investors. Why in the world would you post this ill considered nonsense? Enlightened American is an oxymoron. You ain’t too smart mate. He is not buying SPACs for the management – all of the SPACs he is buying trade below cash with the potential catalyst that their mandates (read their prospectuses) state that if they have not completed a reverse merger transaction – they must return the cash to investors. Why in the world would you post this ill considered nonsense? Enlightened American is an oxymoron.

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