Certainly this stock can be traded either way--if you're willing to sell when the profit arrives. Getting greedy has never worked particularly well for this stock.
I have been selling short recently, as I indicated previously. I am not holding overnight because I can't stomach the volatility and there is plenty of money to be made intraday.
I think it's clear there are real issues with the DOJ. This isn't made up by somebody, and the officers' actions, while benefiting traders willing to play both directions, are IMO getting increasingly disturbing to the street. It's getting hard to doubt that they truly have been attempting to keep the price up for their own gain. The options that Lee, Siciliano, and Walters cashed in are staggering under the circumstances.
The NYSE fiasco, as T-Dude and myself said earlier, is the real, independent verification that the company is involved in a serious wrongdoing.
All this is becoming clearer. However, it doesn't mean the stock is going to go to any particular price, and more importantly, it might have many rallies and sell-offs before the bottom, or something close to it, is reached. The reason I would not buy today is because there is no indication that there is going to be any serious buying for the purpose of holding by institutions. It is likely that until the story gets played out the only serious buying is going to be short covering. That is fine for trading, but not investing.
The stock shook off this story twice before, but the NYSE back-out indicates that the company has run out of credibility. Barrons, Greenberg, the NYSE, CIBC, and close to nine million shares short... the list of reasons not to own is formidable. The is not the entry signal for the contrarion. That long-term entry will come after the beans finally get spilled and people capitulate and all the remaining analysts hurriedly issue their downgrades and everybody moans about lawsuits and how dead the stock will be etc. I don't know what the price will be then nor do I care... that will be the time, when the stock bases and everyone hates it, to play contrarian and invest. JMO. Good luck. |
