The Shorting of Frauds, Overhyped and Bankrupt Stocks Journal

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
 
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
 
Quote from 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
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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.
 
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.
 
ATPG might be traded this way too. Problem is that sometimes the company just files without having the event leaking out
 
Quote from 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.
More...

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
 
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.
 
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