The Shorting of Frauds, Overhyped and Bankrupt Stocks Journal
- Thread starter Daal
- Start date
I've done some more reseach on OSG and posted on SA
http://seekingalpha.com/instablog/5...t-be-why-people-are-so-nervous-to-lend-to-osg
I didn't put lies though. I'm going to keep a small short until either I get confident they are finished or there is some kind of news out that clarifies things
http://seekingalpha.com/instablog/5...t-be-why-people-are-so-nervous-to-lend-to-osg
I didn't put lies though. I'm going to keep a small short until either I get confident they are finished or there is some kind of news out that clarifies things
OSG averaged in at 3.57 (1/2 position)
Not worth very much, given that he is (as far as I know) the only person reporting this rumor, and that he has not provided a source of the rumor.
Of more interest, as you noted earlier, is the performance of the 2018 and 2024 bonds, now both offered below 44, both doing over $3 million in volume today.
I covered all my shorts on OSG in the after market. I just don't like, doesn't feel right at all
Consider these facts
-They have till Feb 2013 to pay up, little or no reason to file for bk before that. Plenty of time for squeezes
-In the earnings call they said they had $600M in borrowing capacity using their ships, I think that is fluff but it could be true
-They are in the process of selling a ship, as soon as they close that, stock will squeeze
-Stock is down a lot over the last week(all red candles) with a HUGE volume spike yesterday, this is the great new pattern that usually leads to monster rallies(specially with high short interest and bk expectations that might not be fulfilled)
They only reason to remain short was some rumor I had heard about they breaching covenants on their existing secured loans, but contrary to the BK lawyer rumor, it might not be reliable at all, its too little info to remain short. Breaching covenants would force them to file an 8K within 3 or 4days(can't remember exactly), they havent filled anything so far so its a risky. I rather take profits
I will wait for further news to pounce short this. Stock might be a buy as a daytrade tomorrow infact
Consider these facts
-They have till Feb 2013 to pay up, little or no reason to file for bk before that. Plenty of time for squeezes
-In the earnings call they said they had $600M in borrowing capacity using their ships, I think that is fluff but it could be true
-They are in the process of selling a ship, as soon as they close that, stock will squeeze
-Stock is down a lot over the last week(all red candles) with a HUGE volume spike yesterday, this is the great new pattern that usually leads to monster rallies(specially with high short interest and bk expectations that might not be fulfilled)
They only reason to remain short was some rumor I had heard about they breaching covenants on their existing secured loans, but contrary to the BK lawyer rumor, it might not be reliable at all, its too little info to remain short. Breaching covenants would force them to file an 8K within 3 or 4days(can't remember exactly), they havent filled anything so far so its a risky. I rather take profits
I will wait for further news to pounce short this. Stock might be a buy as a daytrade tomorrow infact
I had a short on MLNX a few weeks back, I got squeezed and chopped around and ended up giving up on the stock. Big mistake, its plunging after reporting earnings. Lesson here is that in these momentum stocks you have to garbage index it instead of taking a concentrated short.
It has to be a small position so you wont care about the constant rallies.
Game is not over though, since they beat on both I might get a short tomorrow on a intraday or pre market rally
It has to be a small position so you wont care about the constant rallies.
Game is not over though, since they beat on both I might get a short tomorrow on a intraday or pre market rally