Time to Hang Some MF Global Chads

Pending a so far sadly belated invitation to be King of the World, or similar, NakedShorts is a great believer in democracy. Except when it comes to voting his stock...except when it comes to MF Global Ltd (MF), which holds its annual meeting next Monday in the friendly confines of the Elbow Beach Resort, Bermuda. Three lucky directors drew the ‘Vote Withheld’ straw.

Chief executive Kevin Davis, for reasons blindingly obvious to any sentient mortal.

Bob Sloan, managing partner of S3, “a company which he founded that provides treasury and liability management services to hedge funds,” a director since Sep. 2007. Sloan has so far declined to reach into his amply endowed pockets to purchase shares, and further confirmed his faith in the company’s prospects by taking just 25 per cent of his $250,000 annual fee in stock, preferring the $187,500 balance in something more negotiable. (No other director took less stock, as a percentage of total compensation, than Sloan, according to the proxy statement.)

Martin Glynn, the former chief executive officer of HSBC USA (HBC), who was elected to the board last month but has not so far felt it necessary to join the stockholder Shippe of Foolles (although whatever impulses he may have in that direction are perhaps constrained by the company’s Fiscal 2009 Q1 ending Jun. 30).

His tenure was a huge success. It ran from 2003-2006, coinciding precisely with HSBC’s calamitous Household International Inc acquisition (the deal closed in Mar. 2003) through the disclosure, in Dec. 2006, that the shape of things had gone mostly pear-ish.  HSBC’s announcement was among the first pieces of solid evidence that the credit bandwagon’s wheels were starting to wobble.

Glynn stepped down...cough, COUGH...that month, presumably losing the $177,600 rent allowance and $150,000 tax gross-up that earned a mention in Michelle Leder’s Footnoted.

Hmmm...come to think of it, he’ll fit right in.

Disclosure: NakedShorts Falling Anvil portfolio remains long MF. (Bangs head on table)

Part of the problem?
by Michelle Leder
Footnoted Mar. 5 2007

Earlier: Kevin Davis Memorial Chart du Jour
NakedShorts Jul. 21 2008

Comments

[pmcmullen100:]

What is your point? Your attacks on MF Global amount to no more than red herrings and ad hominems. If you have something substantive to say about the business--and can back it up with some factual citation--then say it. But don't argue through innuendo and false implication.

2008 Jul 24 09:34 AM

[Lavrentii:]

Very clever, Mr. Neck In His Shorts. The Great OZ.

Is this all about propping your short position in MF?

2008 Jul 24 11:43 AM

[Greg Newton:]

1. pcmcmullen100: You say attacks, I say coherent exposition of the significant risks facing this company...that's what makes a market. Oh, and the hominems in question are supposed to be running the company, and the evidence of the last 12 months is that they are doing an award-winning job of it.

2. Lavrentii: Please brush up on your comprehension skills. As disclosed, NakedShorts Falling Anvil portfolio remains LONG MF.

2008 Jul 24 12:11 PM

[business101:]

It's becoming increasingly evident that you cannot pry yourself from the downward spiral. Hint: Time to move on and find another target to amuse youself. We, the people, are bored to tears with your MF fixation.

2008 Jul 24 01:29 PM

[Greg Newton:]

business101: please feel free to read something else more interesting/enlighteni... Unless, of course, somebody is forcing you to read this, in which case the numbers 9-1-1, used in that order on your telephone, may come in handy.

2008 Jul 24 02:35 PM

[siklewded:]

looks like everyone's growing weary greg. rather than choosing not to read, or dialing 911 - I'm gonna do one better. I'm going to tell everyopne I know to petition your publishers to stop giving you a venue. it's a waste of space and a waste of interested investors reading time as it is true you provide no beneficial information - only personal attacks.

2008 Jul 27 10:43 AM

[business101:]

ahhh...2500 shares...shareholder protest...the pieces officially fall into place...

2008 Jul 28 03:19 PM

[pmcmullen100:]

You own 2500 shares of MF, right Greg? Just checking.

2008 Jul 29 09:55 AM

[siklewded:]

2500 long, is an associate 10K short?

2008 Jul 29 10:29 PM

[siklewded:]

THIS IS A BLOG POST, NOT A FACTUAL PRESENTATION, INTENDED FOR ENTERTAINMENT PURPOSES ONLY, AND IS NO WAY INTENDED TO PROVIDE TESTAMENT TO OR A CHARACTER ASSESSMENT OF ANY REAL PERSON, THEIR MOTIVES, POSITIONS, OR AFFILIATIONS.

Dear John,

I'm watchin your holdings, blog, and the short choices your loyal following of sheeple makes, and despite my best intentions I can't help but wonder if your not profitting from it in some discreet way (perhaps both ways), protecting yourself from accusation on the surface. I dunno...I can't help but wonder if others with authority don't have any suspicions as well. Just wonders...questions...... have no facts john. I do not claim to have any facts about anything involving you, your business affairs/dealings, or intentions. You see just as you speculate ridiculously on anything that provides an excuse to short, I can speculate on you, and people will read it. here, on your post. freedom of speech can be a beautiful thing when not abused. JMHO.

2008 Jul 29 10:50 PM