Replies to post #2991 on Dime Bancorp Inc (fka DIMEQ)

[philipmax]

Did anyone notice that the good Judge added that LTW were to get interest on their Award.

Prior to this, the outstanding disadvantage of owning LTWs was condition of the LTW was that we were not to receive interest while waiting for the appeals process. This was great for the FDIC since it could wait us out and even if they were to ultimately lose, the would pay with inflated money (15 years is a lot of inflation).

With this new twist we may get an earlier settlement.

Or, am I mistaken?

[mrholty]

Exactly, this feels like one of those inefficient market times. Buying before Friday's POR seemed insane to me from a risk/reward standpoint.

Reading through the full POR my take is without us the POR had a good chance of being confirmed. Think about it this way. Investing on Friday at $.65 and let's use MadClowns end point as the scenario.

Last week at $.60 you had to worry about the POR, which was not small and your max upside was 300% and downside was 0. For us invested at that time we felt the odds were better than 4:1.

Today, you can buy at $.80 and the POR concern is gone. Upside is now 200% and I cannot see how this worth $0 anymore. This seems to be an asymetric bet.

I now have to go sell some other holdings as I just talked myself into increasing my position, not to 100% but something more.