InvestorsHub Logo
icon url

jwangatusa

02/26/11 9:49 AM

#19705 RE: Kelvin2005 #19694

Maybe think different

If the company has done all above, even the stock does not recover, then I guess we have to take it as it is.



Market can stay in unreasonable state for a long while, although in the end, it will return to fundamental.

Have you thought the other way around? Instead of wait for company do things, figure something to reduced your risk?

Maybe take trip to China, do some very simple check up, it may make you feel better?

Nowadays, it is no longer long and short or just stay on the sideline, you can use options as hedge to protect yourself or to get you involved into action without fully engage. And most brokerages are very easy to allow you to add that ability to your account some may even let you do it if it is IRA account (you do have different requirement on how you need to keep your money, since you can not easily move money into that account, so for example if you want to buy a call and fully intend to execute that, you should have the cash on the sideline until the day pass the option day. You can look at http://www.cboe.com/institutional/pdf/ira4x92001.pdf start at pp 18 for IRA. And pp 22 for the potential IRA restrictions)

So you can use it as insurance, or as a way that predefined loss, and you can have most of your money on the side line? You do reduce your potential profit, but you may feel much easier on your position (you will miss the dividend, and since it is a dividend, it will reduce the call value if you hold long call)?

If you are worry about short attack, you do know based on the Citron's 1st attack and than 2nd post after GH, they basically say they have short the stock than come the 1st attack and they have closed their short position even before they response to GH's report. So, if they are short, they very much believe at least for the next few trade (probably all the way till 10k and few days after it), it is company's position to loss it. And in that, I am pretty sure 10k, dividend will keep them on the sideline for a while until few days pass, and most market start to forget about the effect, than they will try to get another opportunity to get in? Most of the short are just holder at this moment and trying all they can to sell themselves that the company must be fraud and try to have long do the search for them, so they could find someway to crack the shield.
icon url

floridahockeyman

02/26/11 10:10 AM

#19710 RE: Kelvin2005 #19694

//Thanks for your insightful reply. I agree with you on the following
"I think if they should try to back the talk, repurchase the stock, pay dividend, if within enough business flow, hire a third party to verify themselves."

If the company has done all above, even the stock does not recover, then I guess we have to take it as it is.//

LOL

your disingenuousness is patent.

thanks for the chuckle... ;-)