Replies to post #20 on First Security Group, Inc. (FSGI)

[novicetrader]

I just got a starter in premarket @2.14.I'm trying to find the reason why it spiked up to 6+ too though!

[Enterprising Investor]

Some investors live in a vacuum.

I hate to say this, but 56Chevy and I are often confused why it takes so long for the Mr. Market to catch up with something close to reality.

[56Chevy]

I have post-recap BV at $1.79. How in the world did it get up to $6+?

We saw a very simular thing happen after Mr. Gerald Ford infused $500MM into PCBC in May of 2010.

To recap: Mr. Ford bought 91% of the company for .20 @ share... and that should have set the bar for retailers but in all the excitement to get in on the deal retailers took the pps to $1.68 (or 8x what Mr. Ford paid). Other contributing factors were - short covering, chart readers and buzz traders.

EI could confirm this but I wouldn't put billionaire Michael Price in the same league as billionaire Gerald Ford when it comes to bank dealings ...but both men do have their followers. In the PCBC case retailers paid up to 7x what Mr. Ford paid. In the FSGI case retailers paid up to 4.5X what Mr price paid.

I fully expect FSGI to drift down in pps now just as PCBC did...but after that the comparison to PCBC and Mr. Ford end!

*So did Mr. Ford create some billionaire envy among his peers? lol..I wouldn't be surprised. I think Price saw what Ford did when he turned $500MM into $1.5 Billion in a little less than 2 years! Not a bad ROI!

http://www.businessweek.com/stories/2010-05-05/a-new-banking-bet-for-billionaire-gerald-ford

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