Mike, welcome aboard. Recently this thread has tended to the notion that if you cannot fight them, join them, so when someone identifies a floorless they post it here, and it it is shortable, they short. Unfortunately, because my trading is in my SEP account, I cannot join that party, but I think it has been profitable in the four or five recent cases pointed here.
In the case of ARIA, it is my opinion that it is not too late to bail out. Some of these floorless have gone to 1% of their original value, many to 10% and most to less than 30%.
Floorless do come in quite a large variety of color, and often the ceiling is set above the market price, then the stock is shamelessly manipulated to go to a substantial premium to the ceiling (we have noticed premiums in excess of 30%), and then the bandits lay out their "hedges", recovering the full face amount of the floorless with profit, keep getting interest with no funds at stake, and when the price drops under the ceiling, they initiate the death spiral which double their money everytime the stock is halved.
Good luck
Zeev |
