Are You Stuck In NEW?

Discussion in 'Stocks' started by CalScholar, Mar 12, 2007.

  1. What happens to shorts and put buyers with NEW shares halted, possibly for an extended period? Are put buyers with March expiration at risk of losing their investment?

    I ask because I opened a small position with March expirations on Friday. Now I'm concerned that NYSE could turn what should have been a good profit into a loss of initial investment.

    Any ideas???
  2. blast19


    I'm afraid so...I don't think there's much to do about it. I'd guess they'll let it trade before then...if not that's hilarious because it was a very fair expectation that they were going to halt that one.
  3. I'm not at all surprised that shares were halted. Though I figured they'd open up by now. NYSE is releasing little info and none of it sounds good...
  4. dac8555


    not stuck, but damn i wish i ahd held on to my puts!!!!
  5. I figured bankruptcy announcement this week was better than 2:1 while the payoff would have been somewhere near 5:1.

    It's a small position (10 contracts at 0.45). Still, I'd like to take profit or at least get my initial back.
  6. Even without bankruptcy, I expected shares to get hammered by an influx of downgrades and warnings.
  7. NEW YORK (MarketWatch) -- The New York Stock Exchange said Monday it has halted trading of New Century Financial Corp. "due to the review of recent disclosures involving the company's ongoing liquidity and financing efforts." The freeze covers New Century Financial Corp. shares, as well as its 9.125% Series A Cumulative Redeemable Preferred Stock and its 9.75% Series B Cumulative Redeemable Preferred Stock. "Although the company is currently in compliance...the NYSE is not limited to these quantitative standards," the exchange said. "Rather, it may make an appraisal of, and determine on an individual basis, the suitability for continued listing of an issue in light of all pertinent facts whenever it deems such action appropriate, even though a security meets or fails to meet any enumerated criteria." The NYSE said it will continue the halt, "until such time as material information regarding its liquidity and financing efforts has been disseminated and the NYSE has been able to complete its related evaluation." Upon completion of its evaluation, the NYSE will either suspend the security from trading or resume trading. If the NYSE decides to suspend the security, it would then apply to the SEC to delist the issue.


    I don't like the sound of this.
  8. blast19


    What f'ing assholes that makes them sound like....makes is sound as though they didn't like the situation and just randomly decided to suspend the stock because the business has problems...isn't that for investors to decide?

    Seeing as how the company has not been convicted or rightfully shown to have done anything violating NYSE listing rules it seems utterly obtrusive to halt the stock and certainly cause panic in the market.

    Yuck...looks like NYSE is going AMEX.
  9. There's a 30% short float and record put buying last few days. NYSE is screwing over a lot of people. These obstructionists should allow the market run its course.
  10. Htrader

    Htrader Guest

    I always thought you could still exercise options even if the stock was halted.

    So just exercise your puts, and cover when the stock eventually hits the pink sheets.
    #10     Mar 12, 2007