LEND -- Something Fishy...

C

CalScholar

I know many are watching this one, but anyone get the feeling we may be in for an overnight surprise? Somehow, I think LEND will either be up or down 10 points tomorrow morning on an announcement that coincidentally follows the highest volume trading day this company's seen in a LONG time.

Thoughts?
 
Quote from ByLoSellHi:

There are buyout rumors flying with Fremont, so that may be affecting the whole sector.
More...

If that's the reason, I would have expected more erratic behavior out of NEW and NFI.

Someone's been loading up on this one from 15 until now. What do they know that we don't?
 
NEW displayed similar erratic movement the day before its 70% drop and now their being investigated for insider trading. I can't help but wonder if I'll be reading a similar report in the next couple of weeks about LEND. Only this time, the inside info may benefit long positions.
 
cramer mentioned it, and then CNBS mentioned "rumors" they wouldn't elaborate on.

Also:

15:05 NEW New Century Mortgage residential primary servicer rating downgraded at Fitch (5.40 +0.38) -Update-

Fitch Ratings downgrades New Century Mortgage Corporation's, a subsidiary of New Century Financial Corp. (NEW), residential primary servicer rating for subprime product to 'RPS4' from 'RPS3+', and places the rating on Watch Negative. The rating action reflects uncertainties over NEW's ability to maintain adequate funding and remain viable over the near term.
 
I watched this one close today and wanted to short at 17 but couldn't...f'n ameritrade. I hope it tanks!


Short selling can occur only in an account that has margin privileges and meets
the minimum equity requirement of $2,000*. Your account meets both of these
requirements. The problem with the order you placed to short LEND is that there
were not shares available to short.

Shares must be available for loan either through an internal inventory or
through agreements that are in place with external brokerage firms. A short
sale will not be placed if the stock cannot be borrowed. TD AMERITRADE must ask
the lending brokerage firm to locate the shares requested for your order.

All orders to short sell a security are subject to SEC and NASD execution rules.
If the lending brokerage firm requests that the borrowed shares be returned, TD
AMERITRADE must buy-in the shares that you are short, close out your short
position, and deliver those borrowed shares back to the lending brokerage firm.
The risk of loss on a short sale is potentially unlimited since there is no
limit to the price increase of a security and your position may be closed out by
TD AMERITRADE without regard to your profit or loss. There can be no guarantee
that TD AMERITRADE can continue to maintain a short position for an unlimited
duration of time.
 
Quote from pumpanddumper:

The problem with the order you placed to short LEND is that there
were not shares available to short.
More...

When I reopened my short position, Scottrade informed me that I was shorting the last remaining shares.

A lot of people trying to jump on board...could be disastrous.
 
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