Stock sale liability issues
I have been investing for 30 some years and what I see here with this offering is disturbing and offensive, although not surprising given the characters involved. On Friday you have one of the best housing analysts in the country Joel Locker issue a downgrade on housing stocks- Meritage was specifically named as one that had reached levels that were 40% overvalued. On Monday you have the Citigroup, JP Morgan BofA Merrril Lynch and Deutsche Bank salesman pumping 2 million new shares at 34.75 to whoever answered their phone. Usually an offering like this is priced at average closing price for previous 30 days, or previous 20 days. How many of the people who were hustled to buy the stock were made aware of Joel Locker's valuation appraisal by the salesman? Very few if any. I know because I was one of them. Fortunately, I take everything I hear from my "account representative" at Merril w a grain of salt. But most people don't. I think this mentality of burn people and get out of town is still prevalent on Wall Street. It's disgusting and it's going to end ugly.