Interesting exchange on YMB:
Starr is an opportunist like any other hedgie or trading firm. If they see the $$$ in gaming this "perfect storm" scenario to make big $$ to the upside, they will amass the capital and other hedgies to join them in propping this up before dumping at max value because of the short interest. This stock and situation has taken on a unique situation in that it does not matter if it is a good/bad stock any longer. Arbitrage by big money will decide how it will go when it re-opens. So, the shorts are not guaranteed of victory though it seems that way right now. If a bidding horse puts "lipstick on a pig" as the saying goes, it will appreciate because of the market forces at play. With the halt, it slows down the game and allows CCME or any number of "big money" players to plan their move with precision. Who knows what back-end deals are being planned. If I was CCME and even if I knew my books were a little fraudulent, I would find a sovereign Chinese wealth fund (after all the CEO is well connected with the Communist party) to be the bidding horse behind the scenes to prop this "dead horse up" and really turn the seemingly given outcome on its head. This would be epic and unheard of, but the trading halt allows capital to be positioned IMO.
Re: Highest percent of float short during financial crisis 23-Mar-11 02:34 am
precisely what I said before but not as eloquent as you put it. The amount of money at stake on both sides is quite incredible especially for a short term trade. The halt has provided the time for aggressive and smart hedge funds to possibly get together and study the "tape" more closely and see where max trading profits will happen - be it on the upside or downside. Clearly, this thing will settle in the peanut gallery when the dust settles, but maybe these funds will not leave any survivors on both sides? glad I have no position.
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Re: Highest percent of float short during financial crisis 32 minutes ago
I agree 100%.
The moves are setting up as if something is up behind the scenes.
The Starr lawsuit being filed on Options Expiration date and not after. This may have pushed more shorts to exercise their put options. This made the Starr's director resignation mandatory before the suit was filed. Also, Starr bought their last shares after the Fall attack on the stock. The stock was still on REG-SHO list.
If Deliotte signed off, what would have happened ? The stock probably will be lower than it is now. The audit would have been attacked as meaningness at best and you can go from there.
If you read the NT-10K, it states that the outside directors on Thursday were tasked to find outside counsel and a forensic auditor. This was not filed until after options expiration.
Also, who probably owns the additional shares assigned ? Is it retail or is it the market makers ? If it is the market makes, what do they expect ?
