The stock rallied from 10.61 to as high as 11.25. Anybody seen any news? Given I shorted 14,000 against the imbalance, I'm already down $8000 on the position . It started suddenly rallying abt 20 mins after the close. I know it's in play, but I'm wondering..........................
AWE AT&T Wireless Services Inc. Last: 10.61 +0.05 SG Cowen Says it believes a purchase of the company by Cingular is "most likely" and that a cash deal is possible. Notes an estimated $30 billion purchase price assuming an $11.20 per share consideration could be at least half funded w/ existing cash
scalped it a little bit AH but was afraid something was really up ... so I kept my size small ... could not make sense of all the rumors on the yahoo message board
Around 4:50 (EST) Kudlow and Cramer had someone on their show. He said that he could "definitely see other companies raising the bid for AWE...possibly as high as 16-18 dollars." Bam...15.60 bid....15.75 trades...15.80 bid....16's go off. Unbelievable. It was like back in '99 when any stock was mentioned on CNBC it would run a few points. It started coming back down when the interview ended and someone else said that they thought the bids would only get up to 11-11.50.
I never agree with vhehn, but never say never. I agree. Who on earth would short AWE after the news this week ?
I would depending on the price. You never know where AWE opens on the NYSE Monday morning. The NYSE tends to dampen moves that ECNs exaggerate in the aftermarket.
I have made significant money shorting against the imbalance on the close and holding till the next trading day. I guess I am due for a loss. I guess I wasn't thinking as clearly as possible. Someone mentioned the stock traded in the 15 range. That never happened. It got to 11.25. In retrospect, I should have covered when the stock was offered down 4or 5 cts after the close. I don't think, under any circumstances, the stock will open above 11.50 given "the formal auction process" started on Thursday. You dont start an auction 1 day and get a higher bid than Cingular's the next. If someone on Kudlow was talking abt it, that makes the most sense. I was thinking maybe someone knew in advance about an upgrade, but it was upgraded during the day. Thanks to everyone for the comments. I can suck up a $10-15k loss and go on abt my business. It;s been a good month--I've traded 6.7 million shares. However, I would have made 3 times as much with bullets. And.....I absolutely hate losing money. I jinxed myself in the morning by saying I hadn't had a losing day as far abck as I could remember.
I fought my urge, but did look at the Yahoo message boards. What a bunch of supersillious crap they are. People saying shorts are going to "take it up the a**" and other crude pump and dump comments.