The Shorting of Frauds, Overhyped and Bankrupt Stocks Journal

Watch out for a large rally on OSG, careful if short. Stock is super oversold. Only BK or super bad news can keep it down

 

seems like OSG couldn't squeeze it's way out of a wet paper bag.

 

Given the big declines earlier in the week, the low market cap and lack of new catalyst (in the absence of bankruptcy), this is why I like to sell out of the money calls.

You get paid even if there is no chapter 11, and the premiums are higher than normal because of the heightened volatility.

The obvious negative to the strategy is that you don't get to participate in the downside of the stock.

 

OSG bonds are strong today. Careful

 

Does anyone follow this stock DROP, where Tiger Woods is involved with? It all sounds a bit fishy.
1) overly use of jargon and words like 'unique, proprietary, groundbreaking'

2) Track record of athletes involved in or investing in 'idea' companies

I'll probably give it a pass, because I don't like OTC and under $5 stocks.

 

OSG dropped a bomb, shorted some on prem

 

OSG considering Chapter 11

http://www.sec.gov/Archives/edgar/data/75208/000090342312000497/osg8k_1022.htm

"In connection with these matters and other matters, including negotiations with its bank creditors, the Company is evaluating its strategic options, including the potential voluntary filing of a petition for relief to reorganize under Chapter 11 of the Bankruptcy Code."

 

Item 4.02 – Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
_
As previously disclosed in a Current Report on Form 8-K filed on October 3, 2012, Overseas Shipholding Group Inc. (the “Company”) is in the process of reviewing a tax issue arising from the fact that the Company is domiciled in the United States and has substantial international operations, and relating to the interpretation of certain provisions contained in the Company’s loan agreements._As a result of that continuing process, on_ October 19, 2012, the Audit Committee of the Board of Directors of the Company, on the recommendation of management, concluded that the Company’s previously issued financial statements for at least the three years_ended December 31, 2011and associated interim periods, and for the fiscal quarters ended March 31 and June 30, 2012, should no longer be relied upon. The Audit Committee and authorized officers have informed the Company’s independent registered public accountants of this conclusion. The Company is continuing its review processes, including determining whether a restatement of those financial statements may be required, and the nature and amount of any potential restatement. In connection with these matters and other matters, including negotiations with its bank creditors, the Company is evaluating its strategic options, including the potential voluntary filing of a petition for relief_to reorganize_under Chapter 11 of the Bankruptcy Code.

 

I was a few minutes too late to short - but I might sell some more calls at the open.

Or maybe short some above $2 if it gets there

 

If they file I'd expect the stock go to $10M-$20M market cap which is about more than 50% decline from $1.60