The Shorting of Frauds, Overhyped and Bankrupt Stocks Journal

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

  1. Daal

    Daal

    AMR Corp. to formally explore mergers in coming weeks, WSJ says
     
    #81     Jul 10, 2012
  2. m22au

    m22au

    Yes that's what the Street Insider tweet (posted earlier) said
     
    #82     Jul 10, 2012
  3. Sold short: AIN, AOL, AWI, BANR, BC, BGG, BXS, CFFN, CHY, CLI, CPN, CS, D, FCF, FMBI, FOR, FRME, IDTI, JNY, KMP, KMPR, MLI, MOVE, MS, NDZ, NI, NSM, NTRI, NVE, NWN, PACW, PNY, RF, SPH, STSA, TEG, TFSL, UVBI, VC, WBMD, ZION
    today, all on fundamentals, initial positions (0.25% of portfolio/ position)
     
    #83     Jul 12, 2012
  4. Daal

    Daal

    I'm doing a similar approach, I'm making a garbage index and shorting small positions on them. I have SEFE, LUXR, XCLL, AAMRQ, GWBU, DOMK. These are mostly promoted stocks that have awful business but were propped up by spam. Also I still have the put positions on some stocks mentioned earlie
     
    #84     Jul 12, 2012
  5. yes Daal, that's one of my favourite strategies too.
    And, shhht, don't tell anyone, but I recently found out that Mr. Sykes is running a pretty similar strategy. (I always thought he was just an empty talking head before, I don't think so anymore.)
     
    #85     Jul 12, 2012
  6. Daal, the stocks you just mentioned are difficult to trade in and out of though. I prefer to stick to the +$5
     
    #86     Jul 12, 2012
  7. m22au

    m22au

    #87     Jul 12, 2012
  8. Daal

    Daal

    I'm not sure the price is all that meaningful. All I care are
    -How bad the business is, I look at current liquidity ratios, insolvency and operating losses(along with declining revenues)
    -How likely is the stock to squeeze(Spam stocks usually have a hard time going back to the old highs)
     
    #88     Jul 12, 2012
  9. Daal

    Daal

    VLNC filled for bk chp 11 today. Stock was halted pre-market and did not trade. PCX was such a rare play because the news leaked out giving people plenty of time to kill the dumb HFT market markers who didn't pull their bids and bottom pickers

    It will be hard to find other plays like that soon but if it does I hope I'm ballsy enough to take a huge position
     
    #89     Jul 12, 2012
  10. m22au

    m22au

    If and when NOK files for Chapter 11 (possibly as early as 2014?), there will be plenty of opportunities to take a large position, because there will be a lot of "surely it can't go lower" bottom pickers.
     
    #90     Jul 12, 2012