The Shorting of Frauds, Overhyped and Bankrupt Stocks Journal

Discussion in 'Journals' started by Daal, Jun 8, 2012.

  1. Daal

    Daal

    Tomorrow there will be quite a bit of price target adjustments from analysts who tend to be smarter than the gamblers. We will see if that wakes people up
     
    #201     Aug 6, 2012
  2. Daal

    Daal

    I made the mistake of using last weeks pattern(gap down and stock closes at lows after selling off the whole day) to predict today's action. Today you had the dips being bought, I suspect the CEO is right that the ownership is now in different type of hands(In the public float)

    From my experience these gambler types tend to create big rallies that fizzle out and the stock drifts down gradually. Perhaps through the week with no buyout these gamblers will get tired and the stock will drift down to a level it can actually attract other types of investors who are looking at valuation and things like that
     
    #202     Aug 6, 2012
  3. Interative had no KCG shorts all day long
     
    #203     Aug 6, 2012
  4. Daal

    Daal

    Gasparino
    "FBN: Blackstone on verge of buying KCG/taking private for $1.2b before trading screwup; Jeff earned $20m using BX diligence on current deal"

    So who is going to buy now?
     
    #204     Aug 6, 2012
  5. Daal

    Daal

    Yes that was pretty weird. They had 800,000 shares, someone took almost everything pre-market
     
    #205     Aug 6, 2012
  6. Daal

    Daal

    #206     Aug 6, 2012
  7. Daal

    Daal

    You are right, I forgot to subtract 1 from my local time. Do you know which ECNs open up that lead to this liquidity burst at 8am?
     
    #207     Aug 6, 2012
  8. zdreg

    zdreg

    (direct) edge.
    bats exchange
     
    #208     Aug 7, 2012
  9. Daal

    Daal

    "Knight Capital downgraded to Underperform from Market Perform at Keefe Bruyette
    Keefe Bruyette downgraded Knight Capital to Underperform citing valuation following the company's $400M investment. The firm has a $2.50 price target for shares."

    I'm treating KCG as a promoted stock at this point. You have essentially these gamblers keeping the shares at unsustainable levels. Its just that in this case they did it naturally instead of being the result of spam or a promoter. Stock is likely to drift down towards it more sustainable level over the course of some days/weeks.
     
    #209     Aug 7, 2012
  10. For a slow drift down with occasional squeezes, bear vertical option spreads should be good.
     
    #210     Aug 7, 2012