The Shorting of Frauds, Overhyped and Bankrupt Stocks Journal

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

  1. m22au

    m22au

  2. Daal

    Daal

    Shorted PCX after the rumors. Avg 0.844. Still holding the short. Equity likely worthless in bk and chance of rumors being wrong are less than 5% in my view
     
    #62     Jul 9, 2012
  3. Daal

    Daal

    IB doesn't have shares to short right now but amazingly after the rumors there were a lot of shares to short for a long-time. They kept disappearing and reappearing
     
    #63     Jul 9, 2012
  4. m22au

    m22au

    Agree that "chance of rumors being wrong are less than 5%", however as per my comment in my journal, (perversely) the stock could rise above $1 tomorrow even if Chapter 11 is announced.
     
    #64     Jul 9, 2012
  5. Daal

    Daal

    I will probably just cover everything tomorrow to prevent any nonsense squeeze. This might be the best way to play bankrupt stocks. I made some nice gains yet I traded badly. My trading software was flashing new lows on PCX for quite a long time before I decided to take a look at it

    Then I checked my flyonthewall feed and saw the bk rumor and immediately started to hit the bids. Had I checked earlier I would have made more

    Flyonthewall costs $35 a month, it does lag quite a big the actual news, in this case it paid itself many times over but I'm currently researching a better news feed that doesn't have a ridiculous fee like a bloomberg.
     
    #65     Jul 9, 2012
  6. Daal

    Daal

    ATPG might be traded this way too. Problem is that sometimes the company just files without having the event leaking out
     
    #66     Jul 9, 2012
  7. m22au

    m22au

    #67     Jul 9, 2012
  8. m22au

    m22au

    Twitter might be the answer:

    3.33pm
    https://twitter.com/Benzinga/status/222413260794757120

    3.35pm
    https://twitter.com/Street_Insider/status/222413665029197824

    https://twitter.com/Street_Insider
    https://twitter.com/Benzinga
     
    #68     Jul 9, 2012
  9. Do you all think FSIN is a good short at these levels? It seems like the December $9 put for .65 could be a pretty solid bet if it's going down.
     
    #69     Jul 9, 2012
  10. Daal

    Daal

    #70     Jul 9, 2012