Livedoor. Internet darling one year ago. Today, every investor's worst nightmare. Or is it?
If you haven't heard, the government has made allegations that Livedoor, Japanese internet company, has submitted falsified financials in the year-end reports (year ended September 30, 2005). The FSA claims that Livedoor made illegal stock swaps during one of its many M&A transactions. As a result, the stock market pretty darn crashed this week.
I don't know if the company's CEO, Takafumi Horie, orchestrated the alleged illegal acts or not. My worry is that perhaps a person or person conspired without the CEO's knowledge to manipulate the stock price. Horie may be a nice guy but he is no Wall Street genius.
I hope he is not involved in the financial shennigans because in the end, Horie is probably a great catalyst for change in Japan. At least he has the guts to 'challenge' the old business vanguard.
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