Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (8099)	8/8/2006 10:08:58 AM
From: Ramsey Su	Read Replies (1) \| Respond to of 217764

the whole group - BBT CORS DSL FED FMT IMH LEND NCC NDE NEW NFI STI biggest problem with this entire group related to real estate finance is the high likelihood of M&As. e.g. NCC has publicly announced they want to sell their subprime unit. Who knows what wallstreet will pay using OPM. It is hard to place a bet on anyone, I try to use a basket at any given time. Having said that, I like STI because their stock price has not taken any hit at all and may have the best potential for the most negative reaction to surprises. It is also not on the radar screen of the short sellers yet. (4.57 million shares shorted, 1.3% of float, 3.8 short ratio) However, shorting a strong stock that pays div is a risky move. FMT has been one of my favorite and I shorted about 5-6 ago. CORS is very interesting and I have done the most DD on it. They finance huge condo construction and conversion projects, which is the main reason why it is so heavily shorted (46.8% of float). However, many may not understand that though they finance a bunch of junk, they are usually in the first position and may be quite secure unless we have a super hard landing. NEW and LEND are both great shorts but both are also great acquisition targets. Finally, this group is so heavily shorted now that many may not be shortable on any given day. It is extremely exposed to the huge volatility of squeezes. How's that for a non-answer? <ggggg>