8 replies to this topic

[jawndissedi]

will never get old!

In early trading, the shares were at $1.86 on the New York Stock Exchange.

Bloomberg

[greenie]

To complete a trade, there has to be a buyer and seller. Question is who is buying those stocks????

[jawndissedi]

To complete a trade, there has to be a buyer and seller. Question is who is buying those stocks????

Well, my ex-wife's boyfriend was a big buyer of Worldcom when it hit $1 because, as he explained to me at the time, "After all, it is Worldcom." Maybe he's buying NEW this morning -- I sure hope so!

And, oh yes, "smart money" has also been buying:

Citigroup disclosed on Feb. 28 that it recently upped its stake in New Century to over 5%, adding some 1 million shares just weeks before New Century revealed the investigation by federal prosecutors. Citigroup declined to comment. -- Business Week, 7MAR2007

I guess they're even smarter today . . . .

Edited by jawndissedi, 12 March 2007 - 08:32 AM.

[greenie]

Now think about it - one year back, you were thinking correction to housing bubble is all priced in - even before you saw one cockroach Speaking of cockroaches, which one will be the next do you think?

[jawndissedi]

Now think about it - one year back, you were thinking correction to housing bubble is all priced in - even before you saw one cockroach

Speaking of cockroaches, which one will be the next do you think?

I believe NFI may actually go BK along with NEW -- in fact, I thought NFI would get there first. I'm also very bearish on NDE, LEND, FED, AHM and FMT. I think DSL is in a lot of trouble, but I'm not making much money on that one so far. As noted previously, I will cover CFC sooner rather than later.

BTW, I'm seeing stories that NEW is halted -- if it goes BK, I never cover and the proceeds of my short sale are TAX FREE. It doesn't get much better than that . . .

[greenie]

BTW, I'm seeing stories that NEW is halted -- if it goes BK, I never cover and the proceeds of my short sale are TAX FREE. It doesn't get much better than that . . .

I was wondering about that as well - how does it work? Is it true that if you do not cover, you pay no taxes even if the company is gone???


BTW, here is what I am seeing on DSL - ST and LT.


It turned around from a powerful trend line. The trendline is powerful, because the general markets are following the same line from Oct.

So, DSL is very likely to head down ST.



LT, it is still in its uptrend, until it breaks the lower line in this second chart. So, the market still does not think it is as vulnerable as the other ones. We will know, when it reaches the line. However, the fact that it reacted faster to the upper line means the market thinks the company is weaker than the general market.



I have some DSL shorts. I am going to hold them, until it reaches 62. Then, I can decide.

Another category that is vulnerable to death spiral is the homebuilders. If subprime goes away, so does their business. Some ones like BZH, CTX, MTH are the weakest. But they will not probably collapse as fast as subprime ones.

[steve]

I believe NFI may actually go BK along with NEW -- in fact, I thought NFI would get there first. I'm also very bearish on NDE, LEND, FED, AHM and FMT. I think DSL is in a lot of trouble, but I'm not making much money on that one so far. As noted previously, I will cover CFC sooner rather than later.

BTW, I'm seeing stories that NEW is halted -- if it goes BK, I never cover and the proceeds of my short sale are TAX FREE. It doesn't get much better than that . . .

My accountant says new tax rules mean you have to pay tax on shorts that go BK. I had to pay on one short in 2003.

[jawndissedi]

I believe NFI may actually go BK along with NEW -- in fact, I thought NFI would get there first. I'm also very bearish on NDE, LEND, FED, AHM and FMT. I think DSL is in a lot of trouble, but I'm not making much money on that one so far. As noted previously, I will cover CFC sooner rather than later.

BTW, I'm seeing stories that NEW is halted -- if it goes BK, I never cover and the proceeds of my short sale are TAX FREE. It doesn't get much better than that . . .

My accountant says new tax rules mean you have to pay tax on shorts that go BK. I had to pay on one short in 2003.

You may be right about this. I won't know for sure until I see how IB reports the trade to the IRS next year.

[OEXCHAOS]

It's pretty bogus. I bet they don't force you to take the loss if you are holding a long! Usually, what happens is that brokers don't want to deal with a short in a company that's delisted and up the margin requirements or otherwise pressure you to cover it. I'm not sure that there's a hard an fast rule on this type of thing. I will say that such is a dandy trade and you pounded the table all the way down. Mark