Here I am waiting to see NASDQ stock American Home Mortgage Investment Corp to see just where the traders would chip it off on the open and disappointment. The cowards have halted trading. And what did these sweeties do that would cause investor anger? They suspended the dividend at 10PM Friday 2 hours before the legal deadline. No doubt it was a long weekend cleaning up the evidence. Now we don't even get the pleasure of expressing displeasure. In premarket trading, the shares lost $2.68, or 25.6 percent, to $7.79. The shares have not traded below $8 since 2001.
Watch this space.
15 comments:
FIRST!!
aaack!!
Damn, this blog is like a ghost town without Casey.
HELLOOO.....elloooo....looo....oooo...oooo...ooo
thpptt!!
S_t_C
I would have added something else, but I am too shell-shocked from 5 figure losses in my accounts to make any further comment now.
Agent,
If misery loves company my Aussies expired worthless.
Up until Friday 10PM ET everybody was saying REITs were just fine. They dollar cost averaged or better their investments, returns were from cash flow, no special exposure, yadda, yadda. This morning no one is talking. No one wants to speak the truth until they square their positions first. REITs are getting YWO different margin squezzes. Obviously their working capital; huge runups in spead all the way to almost historical norms (feh!) and then redemptions. When a few hedgies dishonored redemptions that's one thing but when a REIT does it...
[Great to have a real conversation eh?]
I'm doing pretty good with some WM octber puts.
WaMu and IndyMac are obvious "other shoes." Good that your puts are far enough out. They've been obvious for a long time. I don't think they can paper over their problems this time.
Yah. That was my feeling. I had a bad experience with CFC recently though.
Stupid Cramer! :mad:
I think by October op-ex it will all be over except for the crying. The rate of collapse seems to be speeding up again after the April/May/June exuberance.
I don't get mad a Cramertainment anymore. What's the point? He's the Greg Swann of stocks. Doesn't matter who's right by results, both are always right you just didn't listen correctly.
I did like Ritholtz refering to the new highs as a "melt up."
CFCs business is too opaque to trade for or against. It's all market perception and no fundamentals or even technicals. Elephants fighting at the edge of a cliff, this ant is staying away.
What's the stock symbol for American Home Mortgage Investment Corp?
AHM
Ah, thank you. Loaded it into my iPhone for entertainment.
Well, two months off, but my now expired worthless PUT options on CFC for 27.5 are in the money. This is a case of where "I told you so" nets me a loss of $500. I need to remember to check common sense at the door when playing options.
I hear you ratlab. I had 32.50 for july.
Twas painful.
Still, I only play lunch money on teh options, because I realize I don't really know what I am doing.
Still no news from AHM . . . I suppose this is one of those cases where no news is not necessarily good news (probably quite the opposite, in fact.)
Don't bet against CFC. CFC is loaded up with option ARMs, which have much longer reset periods as compared to regular ARMS(three to five years, as opposed to two years or so for ARMs, if I recall correctly). That means that the day of reckoning for Mozilo & Co. is way down the road, at least in theory. Which brings me to the next point: don't bet against Mozilo, the man is very smart, and I think it's entirely possible that he'll keep CFC alive and well until the day he cashes out the last of his options (after that, all bets are off.)
And everyone here should already know better than to trust Cramer. Before you put any money down on a Cramer-recommended position, ask this question: how much hard cash does Cramer have in that particular position?
I wasn't looking for a bankruptcy at CFC. I think it might even survive. (Though I think pay loans have a shorter reset horizon than you might think, because most people are deferring every month, thus smacking them up against a principle limit).
I just thought it was, compare to history, overpriced. And it was apparently. I missed the window by a few weeks is all.
Cramers, "logical take out at 44" didn't seem to help either. But I can't say for certain how much he really moves teh market, so I'll admit I'm just acting on my own pique when I grumble about him.
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