Ripples of buzz crossed the sea of institutional investors who’d come to Ballroom Β of the Four Seasons Hotel, in central Philadelphia, for the road show promoting Axon’s initial public offering. A giant video screen had been set up on the dais. On each of the twenty round tables in the semi-dark ballroom were platters of satay and sushi appetizers with the appropriate dipping sauces.
Gary was sitting with his sister, Denise, at a table near the door. He had hopes of transacting business at this road show and he would rather have come alone, but Denise had insisted on having lunch, today being Monday and Monday being her one day off, and had invited herself along. Gary had figured that she would find political or moral or aesthetic reasons to deplore the proceedings, and, sure enough, she was watching the video with her eyes narrowed in suspicion and her arms crossed tightly. She was wearing a yellow shift with a red floral print, black sandals, and a pair of Trotskyish round plastic glasses; but what really set her apart from the other women in Ballroom Β was the bareness of her legs. Nobody who dealt in money did not wear stockings.
WHAT IS THE CORECKTALL PROCESS?
“Corecktall,” said the cutout image of Curly Eberle, whose young audience had been digitally pureed into a uniform backdrop of tuna-red brain matter, “is a revolutionary neurobiological therapy!”
Eberle was seated on an ergonomic desk chair in which, it now developed, he could float and swerve vertiginously through a graphical space representing the inner-sea world of the intracranium. Kelpy ganglia and squidlike neurons and eellike capillaries began to flash by.
“Originally conceived as a therapy for sufferers of PD and AD and other degenerative neurological diseases,” Eberle said, “Corecktall has proved so powerful and versatile that its promise extends not only to therapy but to an outright cure, and to a cure not only of these terrible degenerative afflictions but also of a host of ailments typically considered psychiatric or even psychological. Simply put, Corecktall offers for the first time the possibility of renewing and improving the hard wiring of an adult human brain.”
“Ew,” Denise said, wrinkling her nose.
Gary by now was quite familiar with the Corecktall Process. He’d scrutinized Axon’s red-herring prospectus and read every analysis of the company he could find on the Internet and through the private services that CenTrust subscribed to. Bearish analysts, mindful of recent gut-wrenching corrections in the biotech sector, were cautioning against investing in an untested medical technology that was at least six years from market. Certainly a bank like CenTrust, with its fiduciary duty to be conservative, wasn’t going to touch this IPO. But Axon’s fundamentals were a lot healthier than those of most biotech startups, and to Gary the fact that the company had bothered to buy his father’s patent at such an early stage in Corecktall’s development was a sign of great corporate confidence. He saw an opportunity here to make some money and avenge Axon’s screwing of his father and, more generally, be bold where Alfred had been timid.
It happened that in June, as the first dominoes of the overseas currency crises were toppling, Gary had pulled most of his playing-around money out of Euro and Far Eastern growth funds. This money was available now for investment in Axon; and since the IPO was still three months away, and since the big sales push for it had not begun, and since the red herring contained such dubieties as give non-insiders pause, Gary should have had no trouble getting a commitment for five thousand shares. But trouble was pretty much all he’d had.
His own (discount) broker, who had barely heard of Axon, belatedly did his homework and called Gary back with the news that his firm’s allocation was a token 2,500 shares. Normally a brokerage wouldn’t commit more than five percent of its allocation to a single customer this early in the game, but since Gary had been the first to call, his man was willing to set aside 500 shares. Gary pushed for more, but the sad fact was that he was not a big-time customer. He typically invested in multiples of a hundred, and to save on commissions he executed smaller trades himself online.
Now, Caroline was a big investor. With Gary’s guidance she often bought in multiples of a thousand. Her broker worked for the largest house in Philadelphia, and there was no doubt that 4,500 shares of Axon’s new issue could be found for a truly valued customer; this was how the game was played. Unfortunately, since the Sunday afternoon when she’d hurt her back, Gary and Caroline had been as close to not speaking as a couple could be and still function as parents. Gary was keen to get his full five thousand shares of Axon, but he refused to sacrifice his principles and crawl back to his wife and beg her to invest for him.
So instead he’d phoned his large-cap contact at Hevy & Hodapp, a man named Pudge Portleigh, and asked to be put down for five thousand shares of the offering on his own account. Over the years, in his fiduciary role at CenTrust, Gary had bought a lot of stock from Portleigh, including some certifiable turkeys. Gary hinted now to Portleigh that CenTrust might give him an even larger portion of its business in the future. But Portleigh, with weird hedginess, had agreed only to pass along Gary’s request to Daffy Anderson, who was Hevy & Hodapp’s deal manager for the IPO.
There had then ensued two maddening weeks during which Pudge Portleigh failed to call Gary back and confirm an allocation. Online buzz about Axon was building from a whisper to a roar. Two related major papers by Earl Eberle’s team—“Reverse-Tomographic Stimulation of Synapto-genesis in Selected Neural Pathways” and “Transitory Positive Reinforcement in Dopamine-Deprived Limbic Circuits: Recent Clinical Progress”—appeared in Nature and the New England Journal of Medicine within days of each other. The two papers received heavy coverage in the financial press, including a front-page notice in the Wall Street Journal. Analyst after analyst began to flash strong Buys for Axon, and still Portleigh did not return Gary’s messages, and Gary could feel the advantages of his insiderly head start disappearing hour by hour…
1. HAVE A COCKTAIL!
“… Of ferrocitrates and ferroacetates specially formulated to cross the blood-brain barrier and accumulate interstitially!”
Said the unseen pitchman whose voice had joined Earl Eberle’s on the video sound track.
“We also stir in a mild, non-habit-forming sedative and a. generous squirt of Hazelnut Moccacino syrup, courtesy of the country’s most popular chain of coffee bars!”
A female extra from the earlier lecture scene, a girl with whose neurological functions there was clearly nothing in the slightest wrong, drank with great relish and sexily pulsing throat muscles a tall, frosty glass of Corecktall electrolytes.
“What was Dad’s patent?” Denise whispered to Gary. “Ferroacetate gel something-something?”
Gary nodded grimly. “Electropolymerization.”
From his correspondence files at home, which contained, among other things, every letter he’d ever received from either of his parents, Gary had dug out an old copy of Alfred’s patent. He wasn’t sure he’d ever really looked at it, so impressed was he now by the old man’s clear account of “electrical anisotropy” in “certain ferro-organic gels” and his proposal that these gels be used to “minutely image” living human tissues and create “direct electrical contact” with “fine morphologic structures.” Comparing the wording of the patent with the description of Corecktall at Axon’s newly renovated Web site, Gary was struck by the depth of similarity. Evidently Alfred’s five-thousand-dollar process was at the center of a process for which Axon now hoped to raise upward of $200 million: as if a man didn’t have enough in his life to lie awake at night and fume about!