Livedoor - Why Do They Have Money?

[Mulboyne]

This is not a small affair if there has actually been a breach of securities laws The risk for Livedoor is if the Tokyo Stock Exchange decides that the actions of its officers requires that Livedoor shares be de-listed. Without publicly-traded securities, life would get very bleak for them. The TSE has shown it is prepared to take such action in the examples of Seibu and Kanebo. Also, the exchange's credibility is pretty low right now following the software hiccups so they may look for an opportunity to reassert themselves.

What drove the overall stock market down so sharply today was the rumour at lunchtime - later confirmed - that brokers were no longer prepared to accept shares of any of Horie's companies as collateral in margin transactions.

In a margin transaction, you only have to put up a portion of total selling or buying cost. If you buy shares, for instance, and they begin to go down then you are required to post "additional margin" to ensure that you have funds to cover a potential loss. This can be in the form of cash or other shares that you hold.

If investors can no longer use Horie company shares, then they may have to sell any shares they bought on margin because they do not have adequate collateral to post as margin. It isn't as if you can sell Livedoor group shares and post the resulting cash instead because they are all currently untradeable.

There is a lot of noise about this and there will continue to be but it is probably worth remembering that even though Livedoor is a high profile company, it remains relatively small scale.

One interesting angle is that the foreign press describes this as "old vested interest Japan" against "new shareholder value Japan". If Livedoor really are guilty of the breaches described, however, then it fits more closely with the traditions of "old Japan" seen most recently in the Seibu railway affair. Following the burst of the internet bubble and the collapse of Enron, investors and regulators in the west have been far less willing to accept the behaviour of a CEO who treats a publicly traded company as his own personal empire.

[Greji]

-snip-Also, the exchange's credibility is pretty low right now following the software hiccups so they may look for an opportunity to reassert themselves.-snip-

You are absolutely right; however, I think that even if the the TSE wants to (or maybe, allowed to) pursue this now. It most likely is going to be shifted to that ever-famous back-burner to simmer. After, the initial media frenzy, it will disappear in the sunset faster than a hero in a macoroni western. Somewhere in the next five to ten years a final court ruling will be announced (slap, slap) and that will be it. I don't believe that the powers that be, want a complete scalp taken right now and it may well be just a little knee to the groin for Horiemon to just remind him he's still playing with the big boys!

[IkemenTommy]

It's pretty pathetic if you consider that the market goes to shit after Livedoor's small incident. It's not like the entire economy revolves around Kabushikigaisha Livedoor, or does it?

[Greji]

It's pretty pathetic if you consider that the market goes to shit after Livedoor's small incident. It's not like the entire economy revolves around Kabushikigaisha Livedoor, or does it?

It's just registering the supposed new guy clout! I still don't think they will let it last!
http://www.bloomberg.com/apps/news?pid=10000101&sid=ahs3GS7HWykw&refer=japan

"....Internet-related shares including Softbank Corp. and Yahoo Japan Corp. fell for a second day. The Yomiuri newspaper said today that Livedoor Co. falsified earnings to show a profit instead of a loss in the year ended September 2004.

``Earnings such as Intel's that missed investor expectations are having a big effect on technology shares today,'' said Atsushi Osa, who helps oversee $4.1 billion at Sumitomo Mitsui Asset Management Co. in Tokyo. ``The share sell-off, especially in Internet-related companies, will continue to hurt the market until the Livedoor incident quiets down.''...."

Did they say "until the Livedoor incident quiets down"????

I wonder who will do the quieting? hehehe

[L S]

Livedoor got things going south but new earnings reports from Intel, Yahoo! and other techs in the US are feeding the anticipated correction. Gotta love tech...

[L S]

GuyJean! Did you get to see the raids from your office? Did you buy a beer at the conbini below and enjoy the show? Wish I had been there...

[IkemenTommy]

The police raid..

[Greji]

GuyJean! Did you get to see the raids from your office? Did you buy a beer at the conbini below and enjoy the show? Wish I had been there...

You could see it from my office, but unfortunately I was out to the sale at Akihabara. I didn't see any of the used mother's g-strings that GuyJean was recomending, but did get a nice buy on a couple of good used LLL thongs!

[Greji]

Save your confederate money, Livedoor will rise again!

Selling stampede shuts down Tokyo stock market
By Linda Sieg and Yukari Iwatani
http://today.reuters.com/news/newsarticle.aspx?type=businessNews&storyid=2006-01-18T063758Z_01_T88423_RTRUKOC_0_US-MARKETS-JAPAN.xml&rpc=23
TOKYO (Reuters) - A stampede of sell orders forced the shut-down of the world's second-biggest bourse on Wednesday as investors fled the Tokyo stock market, spooked by fallout from an investigation into Internet company Livedoor Co..

The Tokyo Stock Exchange suspended trading at 0540 GMT (2.40 p.m.), 20 minutes before the normal closing time, after the number of transactions threatened to exceed its computer system's capacity of 4.5 million trades per day.

The exchange has been hit by a series of system problems in recent months, including a glitch that halted trading for almost a full day late last year.

Analysts said Wednesday's shut-down would deal another blow to the image of the exchange, which has plans to list its own shares.

Exchange President Taizo Nishimuro told a news conference earlier that the bourse would also consider shortening trading hours on Thursday and beyond if necessary.

"The recent spike in orders is extraordinary," he said.

The number of transactions had reached about 4 million by 0525 GMT (2:25 p.m.).

News that the exchange was considering a shut-down accelerated selling across the board, pushing down the Nikkei share average by more than four percent to as low as 15,059.52 before it clawed back to finish the shortened session down 2.94 percent at 15,341.18.

That was still the Nikkei's biggest one-day fall since April 18, 2005, when it fell 3.8 percent. The broader TOPIX index fell 3.49 percent to close at 1,574.67.

The three-day sell-off has wiped out more than $300 billion in shareholder value -- equal to about the gross domestic product of Sweden.

[IkemenTommy]

I bet Horiemon is enjoyed all of this free news coverage while his stocks will soon bounce back.

[GuyJean]

GuyJean! Did you get to see the raids from your office? Did you buy a beer at the conbini below and enjoy the show? Wish I had been there...

Well, I was at work at the time.. But yes]http://www.fuckedgaijin.com/forums/photoplog/images/18/1_CA322403.jpg[/img]

GJ

[canman]

The wife just told me the news reported a high ranking official of Livedoor was found dead at the Shinagawa Hotel this morning. This must be very serious. I wonder who it was?

[GuyJean]

The wife just told me the news reported a high ranking official of Livedoor was found dead at the Shinagawa Hotel this morning. This must be very serious. I wonder who it was?

I just saw a blurb.. I think it was a Livedoor board member offing himself in a hotel in Naha, Okinawa.. More to cum..

GJ

[Greji]

I just saw a blurb.. I think it was a Livedoor board member offing himself in a hotel in Naha, Okinawa.. More to cum..

GJ

Ah hah! A sekininsha has been identified and sekinin totta! Iken rakuchaku! They'll be back to short selling by tomorrow!

[L S]

The wife just told me the news reported a high ranking official of Livedoor was found dead at the Shinagawa Hotel this morning. This must be very serious. I wonder who it was?

If it was Shingawa, it's gotta be the Shingawa Prince. People love to off themselves in that place. Kinda like the Keio Plaza in Nishi-shinjuku.

[canman]

I heard Shinagawa, but my wife said Okinawa. Its kind of similar. But to slit your wrist, wasn't there one of Taro's famous death mobiles around, or a charcoal burner. Something less violent.

[homesweethome]

Ah hah! A sekininsha has been identified and sekinin totta! Iken rakuchaku! They'll be back to short selling by tomorrow!

Ano Nee, GJ, when you have this in the palm of your hand, just give us a little bit more of a warning, huh? (like 15 minutes). Much more could have been made in the collapse of the Nikkei.

Let's spread the wealth! Ha! ching, ching!

[Captain Japan]

Ok gentlemen, let's stop with the rumors...it was Okinawa.
Securities firm exec connected to Livedoor found dead in Okinawa
Mainichi

NAHA, Okinawa -- A body thought to be that of a securities firm executive who formerly headed a company in the Livedoor group was found here on Wednesday evening, apparently after he committed suicide, police said.

Police said the body found in Naha appeared to that of the 38-year-old vice president of H.S. Securities.

Public prosecutors recently raided the securities house as part of their investigation into alleged fraudulent stock trading by Internet giant Livedoor. They said they had not questioned the vice-president....more...

[GuyJean]

Ok gentlemen, let's stop with the rumors...it was Okinawa.

Hey, I got the official scoop before Marvin! Check the timing of my post.. Actually, canman was the man.. I just added some facts a couple hours later..

A rumor would be if I said 'two, naked, gay, French, gaijin jumped off the Prince Hotel' in a suicide pact.

GJ

[Captain Japan]

GJ, how about if you just post everytime you see a body fly past your window? Try and get the company name off his badge as well.

[Greji]

GJ, how about if you just post everytime you see a body fly past your window? Try and get the company name off his badge as well.

And if he was from my company, check his time card because he's suppose to be off the clock when he does that!

[American Oyaji]

I think the "big boys" pulled some dirty tricks to go after Horiemon and ended up getting burnt themselves witht he stock market system going down.

[GuyJean]

GJ, how about if you just post everytime you see a body fly past your window? Try and get the company name off his badge as well.

And if he was from my company, check his time card because he's suppose to be off the clock when he does that!

You silly fuckers.. But I will!

There's gotta be a suicide emoticon somewhere on the net..

GJ

[maninjapan]

http://www.crisscross.com/jp/news/361665

Securities house exec involved in Livedoor deals found dead

Friday, January 20, 2006 at 07:24 EST

TOKYO — Hideaki Noguchi, vice president of a brokerage house linked with corporate takeover deals by Internet and financial service provider Livedoor Co, died Wednesday evening in an apparent suicide in Naha, Okinawa Prefecture, prosecutors and Naha police said Thursday.

[Greji]

There's gotta be a suicide emoticon somewhere on the net..

Just the one for induced drowning

[Captain Japan]

GJ,

How was the panty trade today at Ropp Hills?

[GuyJean]

Sorry, I was slacking...

Beautiful!..

Prosecutors arrested Livedoor Co. President Takafumi Horie on Monday..

Also arrested was Livedoor Chief Financial Officer Ryoji Miyauchi, the sources said.

Three other executives of Livedoor were also arrested, the Web site of the Nihon Keizai Shimbun said.

Let's see.. That would be..



There were a lot of satellite trucks when I left work today.. But it wasn't as crazy as last week.. The soiled panties had already been sold out.

GJ

[canman]

[Big Booger]

Livedoor President Horie arrested for alleged financial fraud



Japanese prosecutors arrest Livedoor CEO



Livedoor chief arrested in Japan

Will it stick? I mean is he definitely in deep shit now or what? This sounds so much like Enron or Worldcom... They moved rather quickly in their arrest.

[cstaylor]

This is nothing like Enron. Was LiveDoor gaming the energy markets, causing the heating bills for tens of thousands of people to shoot through the roof?

Interesting how there's nothing in the news about Huser or Abe and Mori's connection to them...