Shorting CFC

[Lake Hills Renter]

Looks like the rate cut talk is definitely out there:



Wall Street barreled higher Wednesday, driving the Dow Jones industrials up more than 200 points for the second day in a row after a Federal Reserve official hinted that the central bank may lower interest rates again.

The market was elated after Fed Vice Chairman Donald Kohn told the Council on Foreign Relations that recent financial turbulence has reversed some of the improvement seen in markets in previous weeks, and could squeeze credit for households and businesses. He said tight financial conditions may merit "offsetting" policy from the central bank.

[casey1167]

Market goes up $331.01, or 2.55% and yet CFC goes down $.25 or 2.79%..... what is going to happen to CFC when the market starts going back down again?? I would say Mr. AwaySooner is going to take us all out to Prime Rib with all the money he is making on his shorts....

[AwaySooner]

I actually don't short anything, my portfolio is too small, I leverage with options. Unfortunately, I also own WM, GS, and WFC puts, it's not pretty today. Thank god most of them are Jan, April puts.

[AwaySooner]

The CFC saga continue, market is flat and CFC is up 0.42 as of now, simply because they paid BAC dividend. LOL. I didn't know making payment to loansharks in a death spiral financing is a good news. This game is rigged I tell you.

[casey1167]

[AwaySooner]

[AwaySooner]

[casey1167]

Back in the day, I shorted Snapple when Snapple was the rage.... it was hard to hold the short, as Snapple kept on going up for about a month, but five months into it, the stock dropped in half...

Be patient AwaySooner... fundamentals will kick in sooner or later...

The 9/30/07 quarterly income statement they have on Yahoo show that CFC lost $1,967,702,000 before income tax benefit. Funny thing is, all the news reports the loss AFTER income tax benefit... yes the income tax benifit is real, and they have enought taxes paid in over the last few years to realize the benifit (unlike GM) but the $1,967,702,000 number is the nut they are going to have to fix going forward.

[casey1167]

[casey1167]

Well, CFC at 8.42 at the end of closing today.... I hope AwaySooner is covering those puts he was talking about on 11/30/07... back when CFC was at 11.22

[AwaySooner]

[perfectfire]

[casey1167]

Oh, if one could only time selling puts on CFC.... got below $7 today...

BAC... CFC close the year at $8.94, so Bank of America will have to post a comprehensive loss on investment in CFC of over a billion dollars... (I believe the stock was convertable at $21)

[AwaySooner]

$5.47! I picked up a few puts for BK plays, I was late to the party and still make some money.

[deejayoh]