peHUB First Read

* David Pakman: VCs should not confuse traction with value.

* Sequoia Capital reduces its website to a search bar?

* Jeff Korzenik: Forget “L” or “V” shaped recoveries, and get ready for the “Q” recovery.

* Morning Call: U.S. futures point lower, London falls early, European shares dragged down by China and financials, the Nikkei skids to 3-week low (despite Sanyo surge) and Chinese shares keep sliding.

* Dan Frommer can’t understand why 65% of all music sold in the U.S. is via compact disc. I would assume the answer is “car stereos.” Pretty sure I was still buying cassettes until 1994, for that very same reason.

* Sarah Lacy: Will Rosetta Stone’s stumbles bleed into the IPO euphoria?

* Time Mag notices the flood of PE firms that have filed for REIT IPOs, in order to take advantage of the distressed housing market.

* David Yermack of NUY Stern:

I study large charitable stock gifts by Chairmen and Chief Executive Officers (CEOs) of public companies. These gifts, which are not subject to insider trading law, often occur just before sharp declines in their companies’ share prices. This timing is more pronounced when executives donate their own shares to their own family foundations. Evidence related to reporting delays and seasonal patterns suggests that some CEOs fraudulently backdate stock gifts to increase personal income tax benefits. CEOs’ family foundations hold donated stock for long periods rather than diversifying, permitting CEOs to continue voting the shares.

* Get all of today’s VC and private equity news…