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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Pink who wrote (3351)	9/28/1998 8:19:00 PM
From: Y2k_fan	Respond to of 18998

<< Correction: Sold the Jan 20 CALLS, not puts. >> I think either are correct, depending on how deep your pocket is. Most people don't have several million dollars of buying power like you do. But if you sell Jan(Or Oct) 20 puts, you need to short 100000 shares of FP. I could not even find 500 for shorting. Only bought 20 Oct 25 puts this morning before the crash.

To: Mr. Pink who wrote (3351)	9/28/1998 8:36:00 PM
From: Kip518	Read Replies (1) \| Respond to of 18998

MF's take (includes a hedge to keep the long's hopes alive -- Clearly GE will be happy to pick up part of the portfolio when FP files for bankruptcy!) Home equity lender FirstPlus Financial Group (NYSE: FP) tanked $7 13/16 to $15 1/16 in heavy trading on reports that GE Capital Corp., the finance unit of General Electric (NYSE: GE), isn't interested in buying all of FirstPlus. The Dallas-based lender, which specializes in making loans up to 125% of the value of a house, announced about a month ago that it had begun discussions with potential acquirers in an effort to diversify and grow the business while reducing its dependence on securitization. GE Capital was among those sizing up the company and could still decide to make an equity investment, though it won't acquire FirstPlus outright. Merrill Lynch lowered its near-term rating on the company to "neutral" from "buy" but kept its long-term "buy" rating newsalert.com

To: Mr. Pink who wrote (3351)	9/28/1998 10:36:00 PM
From: Cube	Read Replies (2) \| Respond to of 18998

Mr. Pink, Memory serves, that certain FP longs were the most vociferous about suing you for your stance on their stock. After today's news, I can only say - shame on you for forcing GE Capital to not be interested in buying FP. Shame on you for forcing Jack Welch to tell one of his subsidiaries to walk away. Mr. Pink, your internet posts on this thread are simply causing too many companies to cook their books, and too many prospective buyers to catch on to the book cooking. When will the SEC realize how dangerous you are to have sniffed this out a month ahead of time??<<gggg>> Cube

To: Mr. Pink who wrote (3351)	9/28/1998 10:41:00 PM
From: F. Lynn	Read Replies (1) \| Respond to of 18998

Congrats and thank you for this pick. Question regarding the subprime industry: did you short FP based on your knowledge of the industry dynamics or on factors unique to the company. Given the extensive discussion, here and elsewhere, regarding the drying up off asset-backed bond markets and refinacing's threat to I/O strips' value, it seems others in this group are ripe for a fall too (that is, if there any left that haven't imploded). So, I guess I am asking: is there any reason why other players in this market will be immune to fp troubles, and are you looking at any of them as potential shorts? Thanks.