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THE TRAITOROUS TRADER!
Fickle Financier Makes Money as Marvel Meets Mayday!

Not a hoax! Not an imaginary tale! A ruthless financier shows the world what a real super-villain is like by making money as he hurtles his company toward certain financial doom!

It's a tale that's been told countless times on Wall Street, true believers, but this time there's a devious twist. The company in question is none other then MARVEL COMICS - which owns countless superhero characters, including Spider-Man, Captain America, The X-Men and The Hulk.

Ron Perlman, who has owned 80% of the stock for several years, has single-handedly saddled the company with insurmountable debt, reaped millions off of junk bond offering using company stock as the only collateral, only to sabotage that stock's value by offering to buy all outstanding shares at less than 20% of what was the going rate!

Captain America In any circumstance, such behavior is despicable - a portrait of greed running amok. But when such villainous practices are applied to a COMIC BOOK COMPANY, it takes on an even more treacherous twist.

After all, Marvel is founded on stories that created a universe where good ultimately triumphs over evil. Where honesty finds the greatest reward and betrayal can mean only certain doom.

But unfortunately, Ron lives in the real world, safe from the clutches of The Hulk's grasp or Captain America's shield. And unless the Securities Exchange Commission starts using web shooters, even they probably won't stop this slippery slimeball from getting away with what he wants: Marvel at a discount price so he can sell it to a movie-making mogul.

Disgusting, truly. Is nothing sacred?

For those who are curious, here are the details:

Spidey Sign Ron bought 80% of Marvel's stock a few years ago for what many considered a high price. He then purchased a trading card company and sticker company for an even higher price - relative to the revenues these companies generated. Immediately, the comic book market slid into one of its worst business periods, leaving Ronny with no way to make his money back.

Spidey Sign Friendly Neighborhood Spiderman So Ron offered to sell Marvel BONDS - which would pay no cash interest, but a large principle in 1998. Here's the trick: Ron's bonds had only one type of collateral: Marvel's stock. If you cashed in your Marvel bond, that's all you got: Marvel stock. Since Ron has had many series of successes on Wall Street - and Marvel stock risen for most of its existence, a number of investors jumped in, handed over a lot of cash, thus replenishing Ron's pockets. He hasn't suffered since.

Spidey Sign In October of 1996, Marvel announced poor earnings for the previous quarter, and that it could not make payments on the huge debt which Ron's unwise purchases of the trading card and sticker company caused. Stock price sunk from around $10 to $5 a share, hurting Marvel's bond value as well.

Spidey Sign A week later, Marvel - i.e. Ron - decided to offer more shares to raise money. Ron offered to buy 350 million of them, enough to keep himself as 80% shareholder - but only at 85 cents a share, less than 20% of the going rate. He did this after "meeting" with people who owned the most bonds - which they took as a cue to sell Marvel bonds before Ron made his announcement. Several people, including a reporter at The Wall Street Journal, said this smacked of insider trading.

Spidey Sign When the controlling shareholder says his company's stock is only worth 85 cents a share, people believe him. Marvel stock fell from $5 to $2 just on news of Ron's offer, leaving the bonds worth almost nothing, and Marvel's stock ripe for Ron's picking.

Everyone assumes Ron's plan to buy the new stock at an outrageous discount, wait, and then sell Marvel to some movie company who would want to cash in on making a Spider-Man or X-Men movie - like Time Warner did with Superman and Batman.

In the meantime, anyone who ever bought a Marvel bond or stock is left holding the bag (except people who "met" with Ron the week before his announcement - who were spared the most recent plummet in prices). Also, Marvel itself shoulders a crippling debt, which caused it to lay off 115 of its workers in an attempt to avoid bankruptcy. Ron isn't worried. He was paid back by that bond offering some years back.

Also, Marvel must make all of its editorial decision with one eye on its pathetic balance sheet. It is canceling all but twenty of so of its titles over the next year (they had more than 55 last year), and will probably have to justify every penny it tries to spend on the quality of its books. And as far as Marvel's future as a stock investment, forget it: no one will every trust Marvel Comics with their money again.

The most dangerous enemy Marvel faces is, of course, the declining comic book market. But Ron's foolish purchases and his junk bond offering made sure that he wouldn't suffer because of it - and also has forced anyone else who ever invested in Marvel comics, and everyone who works there, to suffer more than poor sales alone could have caused.

Holy smokes, Spidey! How will you get out of this one? We recommend that all Marvel heroes worth saving sign contracts with Dark Horse Comics. They are a fraction of Marvel's size, but were smart enough to make one movie - The Mask - which will keep them secure for years to come.

'Nuff said!

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	Ron bought 80% of Marvel's stock a few years ago for what many considered a high price. He then purchased a trading card company and sticker company for an even higher price - relative to the revenues these companies generated. Immediately, the comic book market slid into one of its worst business periods, leaving Ronny with no way to make his money back.
	So Ron offered to sell Marvel BONDS - which would pay no cash interest, but a large principle in 1998. Here's the trick: Ron's bonds had only one type of collateral: Marvel's stock. If you cashed in your Marvel bond, that's all you got: Marvel stock. Since Ron has had many series of successes on Wall Street - and Marvel stock risen for most of its existence, a number of investors jumped in, handed over a lot of cash, thus replenishing Ron's pockets. He hasn't suffered since.
	In October of 1996, Marvel announced poor earnings for the previous quarter, and that it could not make payments on the huge debt which Ron's unwise purchases of the trading card and sticker company caused. Stock price sunk from around $10 to $5 a share, hurting Marvel's bond value as well.
	A week later, Marvel - i.e. Ron - decided to offer more shares to raise money. Ron offered to buy 350 million of them, enough to keep himself as 80% shareholder - but only at 85 cents a share, less than 20% of the going rate. He did this after "meeting" with people who owned the most bonds - which they took as a cue to sell Marvel bonds before Ron made his announcement. Several people, including a reporter at The Wall Street Journal, said this smacked of insider trading.
	When the controlling shareholder says his company's stock is only worth 85 cents a share, people believe him. Marvel stock fell from $5 to $2 just on news of Ron's offer, leaving the bonds worth almost nothing, and Marvel's stock ripe for Ron's picking.