The Shorting of Frauds, Overhyped and Bankrupt Stocks Journal

NBG could be a nice short given its $2B+ valuation. Thing is, you have to be a bit early on this one, once news hit the headlines you won't find shares to short easily
 
Quote from Daal:

Do they take writedowns on Greek debt right away or are they having room to cook their books like US banks had in 2009?
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The good thing from a free market (banks forced to take losses) point of view is that NBG (and presumably the other Greek banks) were forced to take losses from their GGB holdings earlier this year.

This is discussed in the most recent quarterly "earnings" report was Q1, 2012, which was released on about 30 May.

As a temporary measure, the government provided a 7.43 billion capital injection (not 6.9 billion as previously stated above). However I infer from this that the 7.43 billion EUR is to be repaid from proceeds of a capital raising, which would probably take the form of a heavily discounted rights issue.

Regarding being early, I shorted NBG when it went above 3 USD earlier this year. I agree that it's best to short the stock before people wake up about the dilution that should happen eventually.

The market cap at the time of writing is 956 million * 1.90 = 1.816 billion EUR, which is obviously a lot less than the 7.43 billion EUR needed. For what it's worth, there is also 1 billion EUR in preference shares issued to the government in late 2011 that sits above the common shares in the capital structure.

Given the recent surge in the stock (similar to what happened earlier this year) this might provide a good low-risk entry.
 
I think I will add NBG to my garbage index of shorts. Currently I have a ton of shorts there, mostly pink sheets/OTC scams/frauds/crap companies but I think this one makes the cut
 
The original garbage index strategy did well, most companies tanked, I only had troubles with PVTA(still short, company has no revenues, almost no assets and $300M+ market cap) and DOMK to some extent(spiked on Iphone 5 lies, I added and its coming back down)
But the vast majority of these Pink sheets/OTC crap companies go to $0 and having stop if the company goes up 100% keeps one out of trouble
 
QCOR might put a large short squeeze over the coming days, management is now desperate. Potential buy today and short after a week or 2
 
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