Now the 17 million shorts are in DEAP TROUBLE. The problem was refinancing and liquid cash, and therefore bankrupcy scares, which made the stock drop [even further] from levels like $3 and $2.50--down to $1.20 instead of back up to $4-$5. Now, DRL has freed up much of their capital requirements which had been needed for the NY operations, and will also sell their NY real estate (some of the 11 buidlings owned). Now they can either use that capital or simply get better borrowing rates due to their current stability. The shorts picked on DRL because the whole time they were able to win the psychological warfare and the uncertainty---now they are in a REAL MESS--they simply CANNOT sell their proporaganda anymore!! We bought DRL after hours at $1.50 & $1.52, and it kept going up, totalling 50% increase on the day, and it still only got back HALF WAY back to $2.50, even though it's now double strong! NEW YORK, March 15 (Reuters) - New York Community Bancorp Inc. (NYB.N: Quote, Profile , Research), the largest savings and loan based in New York state, said on Thursday it will buy 11 New York City branches operated by Doral Financial Corp. (DRL.N: Quote, Profile , Research), a large Puerto Rico-based lender. New York Commercial Bank, a unit of Westbury, New York-based New York Community, will acquire two branches in Manhattan, three in Brooklyn and six in Queens. Terms were not disclosed. New York Community also said it will acquire $230 million in taxi medallion, commercial and commercial real estate, multifamily, consumer and industrial loans, and $370 million in deposits at a 4 percent premium -- all from Doral. Reuters Pictures Editors Choice: Best pictures from the last 24 hours. View Slideshow The transaction will give New York Commercial Bank 38 offices, and follows its purchases of Long Island Financial Corp. and Atlantic Bank of New York in 2005 and 2006. New York Community also operates 137 branches of Queens County Savings Bank, Roslyn Savings Bank, Richmond County Savings Bank, Roosevelt Savings Bank, CFS Bank, First Savings Bank of New Jersey and Ironbound Bank. The company expects to add 24 more branches when it completes its acquisition of PennFed Financial Services Inc. (PFSB.O: Quote, Profile , Research) around March 31. New York Community has $28.5 billion in assets. San Juan-based Doral said the transaction will let it focus on its Puerto Rico banking operations, and improve liquidity. The company has said it needs "significant" outside capital to refinance $625 million in notes that mature in July. It has restated several years of results to fix its accounting for mortgage securities. The companies expect to complete the transaction early in the third quarter, pending regulatory approval. New York Community expects the deal to add immediately to earnings, and Doral expects a $10 million pretax profit. Credit Suisse advised Doral on the transaction. © Reuters 2007. All Rights Reserved.
TD Ameritrade does not allow you to open positions on DRL online I believe on that day it went down 30% on no news; this is what they said. "According to our systems, the security you are trying to purchase, DRL, has been added to our suspicious trading list" A Yahoo message got an explanation from TD Ameritrade that people's accounts were being accessed without their authority to short DRL!! Something shocking! But what we see here is that the shorts at the price of $1.50 seem to be saying it's not worth their risking shorting DRL anymore. That was before the news came out.