The Shorting of Frauds, Overhyped and Bankrupt Stocks Journal

Quote from m22au:

Not sure if it was PCX or some other bankrupt company - the suggestion you made after that was to wait for a mainstream (eg. Bloomberg) story about Chapter 11 filing, before taking a larger short position.

Although the Tweeps are saying that Debtwire did get PCX right previously.

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update about share price decline but nothing specific about Chapter 11 or other restructuring:

http://online.wsj.com/article/BT-CO-20121016-711056.html

Shares of Overseas Shipholding Group Inc. (OSG, $4.11, -$1.06, -20.50%) took a big hit amid investor concern that it has maxed out it lending facilities and could soon face a liquidity squeeze. Shares have been on the decline pretty much since 2008 amid a rough shipping market. Debtwire, citing two hedge fund analysts, said late last week that Goldman Sachs and UBS are shopping around about $100 million in the tanker's revolver, looking to create a market for the debt before OSG needs to refinance early next year.
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what about the bk laywer they hired?I'm not quite sure how to proceed here. I might even cut my position as I'm kinda big on it
 
Quote from Daal:

what about the bk laywer they hired?I'm not quite sure how to proceed here. I might even cut my position as I'm kinda big on it
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From memory PCX hired a lawyer many weeks (or even months) before they filed Chapter 11. In that time PCX stock had a 100% type gain from its multi-week low, before the eventual decline in the days before BK.

However with the 2018 bond selling today and the way the stock has acted in the last 20 minutes following the break below $3.90 it does seem like it might be a matter of days.

I took the easier option of selling out of the money call options. Just collect some nice premium and I am happy to get assigned in the event there is a massive rally.

Here is a good article from 21 August about the company's debt burden:

http://www.bloomberg.com/news/2012-...eds-new-loan-agreement-corporate-finance.html
 
What made the short attractive was that the stock barely reacted when I got the bk lawyer news. There is a potential for a morning panic just based on that
 
Quote from m22au:

Yahoo messageboard says "Filling for BK" but no source or details provided.
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lol. If I wanted I could tweet "$OSG, my sources indicate the company will file for chap 11 bk by midnight" and tank the stock. But I won't play these scumbag games
 
Quote from Chuck Krug:

no, wait till after i have added to my position
;)
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and wait for me to short more as well.

Also the rumor would have more credibility if you used the phrases "sources close to the situation" or "sources who could not be identified because they are not authorized to speak publicly"
 
Quote from m22au:

and wait for me to short more as well.

Also the rumor would have more credibility if you used the phrases "sources close to the situation" or "sources who could not be identified because they are not authorized to speak publicly"
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Yeah, someone could just create a BS account like 'CreditReporter' and move the stock in a flash. Just last week someone manipulated VRNG a ton saying that GOOG would settle the suit VRNG has

I want to be aware of this so I don't get caught in these lies
 
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