For most criminal cases, they only effect the criminal and those affected by the crime. The crime is localized but every once in a while a trial and conviction become a symbol of something greater purpose. When it becomes a symbol, those on both sides with little direct involvement make the case much more complex than it normally would be. It is possible to site various cases some even affect politics at the Presidential level. In The Case of Valentine Shortis  by Martin Friedland, University of Toronto Press, 1986 – he shot three people – two died and one was badly injured. His claim was he was insane for a normally sane person does not shoot and kill people. In the jurisdiction that the event took place, the normal result of a person shooting another and found guilty was to be hung till the death. In this case, that is what the public was expecting, but other factors began to play a role. The case happened in Montreal and the representatives of the Crown had a more than active interest;Mr. Shortis was catholic in a province with a divide between protestant and catholic; Mr. Shortis family was wealthy to ensure a much more spirited defence including the leading doctors for treating insane people testified in the case. If you add all the above plus the institutions of church, newspapers and recent past history of hangings the story becomes national in scope. For the topping on the cake add in a the unpredictable layer of government leaders looking for votes or trying to take votes away from the other side and a straight forward issue is anything but a straight forward case.

Linking to dividend paying stocks, most of the time companies play by the rules and their lawsuits, which all companies are involved with, stay local. But every once in a while companies are faced with a bigger story, it becomes a national story. A national story means all sorts of interests line up for and against the company, most having no direct connection to the case. Often times companies become inward and try to ride out the story. As most companies will attest to later, the story really never goes away, but being prepared and trying to anticipate events is something all companies need to do. Not being prepared means the damage to the stock will be lengthy. This is why some will tell you when there is a national story, try to sell some of your holdings and buy back later – it tends to be a more profitable action.

There are more questions than answers, till the next time – to raising questions.