| Thanks for the tip - SELL New Century
- the US's second-largest subprime lender, operating in a market which is the throes of a severe credit crunch and the focus of fears that an overspill of its mounting problems could damp US growth. - the subject, since earlier this month, of an investigation by the US attorney for the central district of southern California into trading in its securities and its accounting practices. It has also received information requests from the SEC and the New York Stock Exchange watchdog. - and a company whose shares have plummeted from above $30 just last month, to a show stopping $3.21 on Friday. So what is the top tip from the analysts at UBS on this pariah of the US stock market? SELL. (Or "Reduce 2″ in the bank's language - before they (unbelievably) were "Neutral" on the stock).
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The Financials Pit Review
For the week of April 9th, 2007
By PitGuru Larry Levin
Recap - Last week we saw a decent amount of buying in the stock indices on a holiday shortened week. Each day (Monday thru Thursday) saw the S&P 500 finish higher but, as expected, the move higher was on fairly low volume due to the holiday type volume. Nevertheless, the market still found a reason to go higher with the very strange situation of having the Employment Report released while the market was closed.
Insult Trading at the American Stock Exchange
According to a tip from one of our readers, two men were fined yesterday on the floor of the American Stock Exchange for 'conduct unbefitting of an exchange member.' A heated verbal exchange and near melee occurred between a broker from Israel A. Englander and a market-maker from G-Bar Trading. The exchange that was shouted for the entire floor to hear, roughly paraphrased: G-Bar market-maker: You're a fatboy… fatboy, fatboy, fatboy, fatboy, fatboy! Israel A. Englander broker: Go have some gay sex, you like it rough, you're gay, gay, gay! Strangely, there was more to the conflict than a disagreement about the propensity to overeat and engage in rough gay sex (not two of the American Stock Exchange's new structured products). Here's what happened: Basically the broker was representing a customer order on the floor (in the pit), found a solicited party off-floor to fill the customer's order, was filled on his resting order by market-makers before actually indicating the presence of the solicited party...
Random Trading Tip: Long-Term Trap
As MLB season gets ready to start, I see people talking about a player they plan to buy & hold all season. I'll let dmgeist or some other MLB savvy trader discuss the MLB stats because I'm not an MLB savant. I do understand PT though. Let's say you find that rare gem that will make a 150% gain over the MLB season. With MLB earnings day in October (around 200 days away), that stock is earning you less than 1% a day. That's a lot of money tied up in a stock gaining so little each day. If you look at the Market Winners you'll see stocks that earned 5-15% in the past 24 HOURS! You see that each day. If you can find a player that will gain 150% by October, you should have no problem finding a stock that will gain 3-5% today and a different one each day (sometimes the same one a a week or so later).
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