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Opko Health, Inc. Message Board

  • skinz4q skinz4q Sep 25, 2013 11:38 AM Flag

    (True) Short Story

    Back in the late 1950s or early 1960s, there was a company called Crosby Teletronics. The founder and CEO was Murray Crosby, the inventor of FM Stereo. For many years, Crosby Teletronics licensed their technology to all the manufacturers of FM stereo radio transmitters and receivers. Among them were major corporations such as GE, Westinghouse, Phillips, etc., which paid royalties on every device they made. Crosby became a very profitable company until the licensees decided to stop paying royalties. This forced Crosby to sue for the royalties that were rightfully due them for the use of their patented technology. During this time, Crosby bought his own company's stock heavily in the belief that he would eventually win in court. The licensees, which all had very deep pockets, dragged out the process for years with appeals and legal maneuvers to force Crosby Teletronics to spend huge sums in trying to protect their patent rights in court. Eventually, they ran out of money. While this was going on, the CFO was shorting the stock with the knowledge that the company was quickly running out of money. Murray Crosby was buying stock from the CFO who was shorting the same stock. Unfortunately, Murray Crosby didn't know that the company was in danger of going bankrupt from the huge legal fees. Eventually, the licensees succeeded in driving the company out of business, and the CFO made a huge killing at Murray Crosby's expense.
    So much for a stock that was being accumulated by the founder and CEO who should have been in the best position to see what was coming but didn't. All he knew was that the law was on his side. The deep pockets of the huge companies that were making a fortune on manufacturing and selling millions of FM Stereo radios won by simply forcing Crosby Teletronics to spend themselves into oblivion. In this case, the CFO and his friends won big by selling the stock short to the CEO. Is Dr. Frost the only buyer of OPKO? Just asking.

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