The Shorting of Frauds, Overhyped and Bankrupt Stocks Journal

Quote from Daal:

They are likely to get clobbered imo. M&A is a major way that US companies destroy shareholder value
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Clobbered how in your opinion? Lawsuits stemming from the Glaucus report? Reputational damage leading to lost business? Or just the usual failure to realize the alleged advantages of the merger?
 
Quote from trefoil:

Clobbered how in your opinion? Lawsuits stemming from the Glaucus report? Reputational damage leading to lost business? Or just the usual failure to realize the alleged advantages of the merger?
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At some point people will find out the teas have pesticides, either through the press or by government enforcement. SBUX will be forced to get new suppliers and restructure the company to meet higher quality standards. Margins will drop, costs will rise. They vastly overpaid for this

Only nice thing about the loss will be seeing SBUXs post a large goodwill writedown down the road
 
Somehow I lost money shorting AAPL today. I don't want to chase anymore, will watch AAPL for a bounce play

I'm going to have to stick to the more liquid stocks in this journal because I don't to mess up good shorts by crowding it
 
FWIW IB shows no more TEA shares available to short, and a borrow rate of 45%. Worse than yesterday, and nasty to have to pay this rate for 3 days until settlement for those who covered today (I did for the remaining shares shares, still hold some short calls ).

It seems new shares were shorted throughout the day. Does it make sense for TEA to still be heavily shorted ?

Search Result Historical Rates Historical Rates

Name Teavana Holdings Inc
Number of Lenders with Inventory 0
Symbol @ Exchange TEA @ NYSE
ISIN Code XXXXXXXP1021
Country United States
Quantity
Available 0 shares
Current
Rebate Rate* -45.33%
Current
Fee Rate** 45.5%

Time Quantity/Shares Available
00:00
40'000
00:30
40'000
01:00
40'000
01:30
40'000
02:00
40'000
02:30
40'000
03:00
40'000
03:30
40'000
04:00
40'000
04:30
40'000
05:00
40'000
05:30
40'000
06:00
40'000
06:30
40'000
07:00
40'000
07:30
0
08:00
0
08:30
0
09:00
0
09:30
0
10:00
0
10:30
15'000
11:00
2'000
11:30
15'000
12:00
2'000
12:30
0
13:00
0
13:30
0
14:00
0
14:30
0
15:00
0
15:30
0
16:00
0
 
Yesterday there was a lot of weird action in the stock, I even considered there was insider trading of some kind. I don't know who is shorting so aggressively. There could be some potential shorting at 15.40+ hoping for a last minute backout, I just don't know, SBUX didn't even left the language vague they just flat out said they will buy it and even gave a time table
 
Quote from Daal:

Yesterday there was a lot of weird action in the stock, I even considered there was insider trading of some kind. I don't know who is shorting so aggressively. There could be some potential shorting at 15.40+ hoping for a last minute backout, I just don't know, SBUX didn't even left the language vague they just flat out said they will buy it and even gave a time table
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I was wondering about that yesterday too. Only thing it could possibly be at this point is FDA action against Teavana, remembering that Glaucus contended a number of their teas would have qualified as adulterated and therefore subject to seizure if the FDA so chose. Nothing else would justify a short of it now.
Not terribly likely, I think.
 
Quote from trefoil:

I was wondering about that yesterday too. Only thing it could possibly be at this point is FDA action against Teavana, remembering that Glaucus contended a number of their teas would have qualified as adulterated and therefore subject to seizure if the FDA so chose. Nothing else would justify a short of it now.
Not terribly likely, I think.
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I thought there was 2 possibilities
-Someone wanted to short badly ahead of SBUX analyst day as a bet
-Someone knew something, along the lines of private studies indicating that the teas were in fact adulterated and they just didn't think the deal would go ahead

These borrow rates are just ridiculous, I don't know what the hell is going on with the SSFs, TEA has them but the market makers are gone, yet you can still send orders in. If I could have shorted them I would have locked a rate bellow 10% a long time ago. Does anyone know if in M&A type situations the market markers just disappear like that on single stock futures?
This is just bizarre to me
 
Quote from Chuck Krug:

never traded ssf's, but can's you just sit on ask?
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Yes, but I don't think you will get filled unless you are wrong(stock moves, there is news, etc)
 
Daal: Regarding TEA, I wouldn't worry about people on here.
But TEA was a Herb Greenberg play, it was all over his twitter, and some of the big boys read that stuff. (or the other way around)
 
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