Thursday, February 19, 2009

The Holland M. Ware system for making millions in the market

Are you wealthy? If so, are you tired of watching your investment returns shrink? Fearful that your money manager is a crook? Worried that you'll have to give up your private jet and a few vacation homes?

Well, my friend, fret no further because now it's possible for you to take the matter into your own hands and generate $millions$ in the market in just a short time.

Sound too fantastic? Believe me, it's not. And it's so simple even the E*trade baby could do it!

Introducing the Holland M. Ware no-brainer “Get richer quicker!” system
In this system, you'll learn how Georgia-based timber baron Holland M. Ware recently pocketed a cool $7.5M and possibly more on the stock of Forestar Group (FOR), a Georgia real-estate holder and developer also involved in mineral and timber royalties. You'll also see how Ware's attorney, David Cook of the Jacksonville, Florida law firm of Foley & Lardner, netted $1.1M by riding his coattails.

Here's how they did it and how you can do it, too.

1. Purchase over 5% of a company's stock at a depressed value.

Below is a chart of Forestar.




















The company made its public debut at the end of 2007 near $23. A month and a half later it made an all-time high of $29.49. After that, it hung around in the high-teens to mid-20s range, but it wasn't until late September, 2008 that it finally broke below $15. It sank like a ship's anchor until it hit bottom in November at a price of just under $3. Ware and his attorney begin accumulating shares in the company during this time period, according to three SEC Schedule 13d filings dated 2/12/09, 1/22/09, and 12/19/08.

Holland Ware: Purchases over 2.6 million shares for $14M between 11/30/08 and 1/5/09.
Purchase prices range from $3.50 to $9.00; average cost/share = $5.35.

David Cook: Purchases 231,500 shares for $1.5 million between 10/31/08 and 1/20/09.
Purchase prices range from $3.36 to $9.00; average cost/share = $6.10.

2. Make an offer well above the average price you paid for your stock but still below what the company is worth. (If for some reason the board actually accepts your offer, you can always rescind it. Maybe that's one reason why Ware's attorney was involved.)

On 1/22/09, Ware makes an unsolicited offer to buy Forestar at $15 per share, much higher than the average cost of his stock but well under historical price levels. The next day Forestar stock jumps to $12, 30% over the previous day's closing price of $9.24.

3. Start dumping your stock at inflated prices while the board considers your request.

Both Ware and Cook begin selling their shares starting 2/4/09.

A couple of weeks later on February 11th, the Forestar board rejects Ware's offer because it “significantly undervalues” the company. That day, Ware unloads more than 1.2 million shares of Forestar stock.

Ware's last filing with the SEC on February 12th showed that he had sold all but 444,230 shares for a total sales price of $21.5 million leaving a net profit (so far) of $7.5 million. We don't know if he's sold the rest of his shares, but I can't think of a reason why he'd want to keep them. Assuming he did sell them in the next few days at an average price of $8.90 (the middle of the price range), he'd gain another $4 million giving him a total of $11.5M yielding a nifty return of 80% in a little over two months. Looks like he can afford to keep that jet.

As for his lawyer, the same SEC document shows that Cook had disposed of all of his shares for a total of $2.6 million. This leaves him with a gain of $1.1 million for a return of over 70%. Sure beats trying cases for a living!

Caveat
Be aware that the SEC could view this as stock manipulation, but the onus of proof is on their side, not yours. It helps that Forestar has significant timber holdings which Ware could use as the main argument for his acquisition offer. It's also interesting to note that on the very same day that the Forestar board denied Ware's offer, they also announced their commitment to increasing shareholder value by doing a share buy-back, slashing debt, and selling some 175,000 acres of timberland. Interesting, no? Maybe Ware can use the proceeds of his Forestar stock transactions to buy this acreage at firesale prices. Could that have been his intent all along..?

As an extra bonus
If you purchase this product today, we'll throw in Holland Ware's strategy on how to save millions in taxes. Here's how it goes. In 2007, Ware took advantage of a loophole in Georgia state law that exempted charitable institutions from paying property tax. What he did was to donate over $100M in timberland to his anti-animal abuse charity (aw!) that up until then had only $300,000 in assets. Unfortunately, the state legislature didn't let him get away with it, but I think if he could have been a bit sneakier he might have been able to pull it off. (See January 27th blog for more info.)

Can we tempt you further?
Okay, if you're still not convinced to buy this product we'll throw in the names of some top-notch white collar criminal defense attorneys just in the event something goes wrong. But nothing should. This is a time-tested formula used by Ivan Boesky and many others, so why not give it a try? You have nothing to lose but your reputation as being ethical but when was that ever a criterion for making money on Wall Street?

No comments: