telebob, how dangerous is it to short the recently penny stock MH Meyerson when the firm is known for its market making and investment banking focus on pennies and other OTCBB stocks?
Actually, I'm inclined to agree with you as it is way late to be planning to become an online broker in a year or so when you have no franchise to base it on (MER and the like can arrive late and have a shot, but these guys?).
In addition, I think their financials may contain some interesting tidbits. I vaguely recall some debt coming due soon that is held by Spear Leeds & Kellogg. Yes, checking the last 10-k, they have a $2 million subordinated note that is due 8/31/99 which could be tough to repay without liquidating part of their $6 million trading securities (The portfolio had already shrunk from $13 million to $6 million from Jan-Oct '98) which, considering their business, could seriously impact their revenues and profits down the road. Perhaps SLK will let it ride, but who knows?
Caution: The Meyerson family and officers own almost 63%, BTW, and MH (who owns 48%) is getting on in years, so selling out is a possibility. Perhaps Zapata?;-)
Bob |
