it's scam insider buying in some cases. they buy but in another account they are dumping or naked shorting it. they know it's going to zero..just like subprime billion dollar shorting cdo,,these insider fraudsters know the bullshit games.,..samething as robbing someone without gun in their heads. or doing bank robbery....even better than arm robbery. poker face bluffing. or gamed. in other words...fucking bullshit man. you just been fucked ripped tricked decieved lied to by the fraudsters--the fraudsters got rich by ripping you off. What moron.. tricked by one of the oldest wall street scams known in the wall street tricksters manual. are you new to wall street.
Can someone explain to me what the concern is exactly? Is it the stock price or is it the bond that they wrote down. Aside from what's being said about poor mgmt, which is the same mgmt that has been there for quite some time previous to last week,I see a lot of people talking about things being fishy and penson being shady etc but I don't see what came out other than the potential bond being written down.
i was greener in 2008....but i did ok on wachovia anyway. I used puts to hedge all trades and ended up doing nicely that way.
Net capital hits. That's what the concern is. The principals say no, it doesn't effect it. No one else believes it.
As bad as Penson is managed, I expect Penson to be a successful business in the future even if it takes a buyout of Penson by another firm. At this time, I would rather be a buyer of Penson shares than a short seller.
QUOTE]Quote from flytiger: Net capital hits. That's what the concern is. The principals say no, it doesn't effect it. No one else believes it. [/QUOTE] Ok, so even if their net cap does get hit then they get fined by Finra or the SEC and possibly have to raise more money. But where is the risk of anyones deposits being effected?
losing money on a security is one thing (obviously it happens to EVERYONE). losing money on a security that you were in solely b/c there was a huge conflict of interest (meaning your firm has zero integrity in my opinion) is quite another. saying "everything's fine - nothing to see here - no hit to cap" is beyond ridiculous. As huggie bear mentioned, insider buying is meaningless. Remember joe lewis - the guy who sank $1 BILLION into BSC. He lost everything. and presumably he had access to info you and i as retail traders didn't. focus on price. nothing else matters.
I don't know anything about Penson, but a brief look at their recent news and charts has all the hallmark's of a pending bankruptcy. Management is in over their heads, they'll scrape out everything they can out of it then it may collapse. I've seen this story before dozen's of times. The health of the company is based on a horse racing track in Texas ? Wow, people should look at Magna Entertainment to see how healthy that business is ( hint - its not good ). Why do so many traders get attracted to these money bleeding controversy ridden companies, when there are so many GOOD choices to buy instead ? So you say you'd rather be a buyer. Why ? Because they are so good at losing money ?
I know nothing recent about penson... the tell tale sign is the the fact they had shit bonds from an insider as collateral. In my opinion things like that happen when there is a race to the exits with the company jewels in hand. It would be very interesting to know what those bonds were securing.