Discussion in 'Chit Chat' started by peilthetraveler, Oct 28, 2008.

  1. I-star financial....what can i say about them? A financial company that many think will go bankrupt, but if it survives, could be a 20-30 bagger that will, next year, pay a quarterly dividend that pays for the price that you got in at (Im actually hoping to get half my money back for the divy they pay for the 4th quarter. This is actually my "high risk" play, you know the 10% of your portfolio that you use for the high risk plays. I picked up a bunch of shares at 1.01 today. SFI also says they are able to buy up to 50 million dollars of stock back, but now that the price has been beaten down to a buck a share, thats about 40% of the company they could buy back. Theres also a huge short interest of 23 million shares. Average volume is about 3 million shares, but if you check out the dates when volume was 5 million shares, you see one dollar jumps, sometimes 1.50. So when those shorts start buying we should see a good run up. Will probably start tommorrow because of the rate cut and then again on thursday as earnings come out.

    Just thought I would give ya all the heads up.
  2. Forgot to mention that shares outstanding is 130 million, so short interest of 23 million is pretty huge.
  3. Going below $10/share and $5/share is a death sentence from institutional investors. We'll see if it has any "legs" left under it.
  4. *UPDATE*

    Well this company is now buying back its debt at 30 to 50 cents on the dollar. They are selling their NPL's and using that money to pay off their long term debt! Amazing. They take a 20-30 cent loss per dollar on their NPLs, then use the money FROM those NPLs to buy back the debt at 30-50 cents on the dollar, thereby netting them 20-50 cents on the dollar!

    Short term debt is their only problem now. All they have to do is figure out a way to refi it and here comes the 20-30 bagger.

    Somehow i think they have figured a way out of this problem because as of today, it was reported that the director of SFI, just filed a notice today (11/10/08) that he bought 500,000+ shares last week. I'm pretty sure tommorrow we should see SFI go up quite a bit. I'm in it at 1.01 per share. Closed today at 1.40 per share. Just thought I would share this with you for anyone who feels like picking up a few 1000 shares and hanging on for 6 months or so. This one is going to be a nice one.
  5. Nice Peli,

    Hope you make a killing.

    I'll keep it on the radar (but won't chase if it gaps up too much tomorrow).
  6. Hit 2.50 today. You guys buying yet or you going to wait until its at 10 dollars and say "man, wish i would've listened to Peil!"