Everyone knows HRB is in deap trouble, and usually the short vultures would have attacked already much sooner. But here, the stock has not yet plummetted?? Is this only because of the large institutional holding? Is the only thing the shorts are looking for is retail traders on the other side?
In past years, $30 was a formidable resistance area for HRB (H R Block), with $18 being strong support Later, the upside barrier lowed to $24-$25 or so, while the support area still hovers around $18. Until that $18 is worn out, which is not happening yet, it is unlikely to see substantial downside from current levels (stock closed at $17.93 today, Dec. 27, 2007) To short HRB now would be shorting at a potential support area, and indeed likely a fairly strong support area. This is assuming quite significant upside risk with limited and below average prospects for downside gain/profit. Regards.
All the other stocks with subprime exposure have collapsed. HRB handled the worse of the cases. Support points mean something only if there is something to support.
I thought this thing would tank too. It seems the option one debacle of 1 bill in cmo's was only a small part of their balance sheet.
It's only a question of when IMO. But meanwhile, just commenting that the shorts are not attracted to it because they'd rather fight stocks that are not being supported. Shorting HRB means fighting instititional holders.