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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (32718)	11/9/2008 1:52:38 AM
From: Spekulatius	Read Replies (2) \| Respond to of 79199

MIC - But what makes it worth even $7 in this environment? Nothing makes it worth 7$. A business like this is not worth 10.5x EBITDA any more. I can buy similar assets for 7-8X EBITDA nowadays. The equity is worth nothing (IMO) and in case of forced liquidation, even the senior debt holders would loose.MIC could go to zero in a heartbeat. Speaking of zeros, i tried a long/short with BGM/GM last week. BGM is GM senior debt trading at about 5$ yielding 30%. With GM stock still going for 5$ that is a nice long/short play, IMO. The problem is how can you short GM stock? None of my brokers would let me.