Sources Suggest Suntech Power's Convertible Bondholders Won't Get Any Money From The Restructuring [View article]
Shorting a call is less risky, but it ties up a lot more capital and your gains are capped at 100$. STP could fall to $0.40 by the time the puts expire. That's a 3x gain on the $1 puts, as they are selling for $0.20 today, very cheap IMO.
Sources Suggest Suntech Power's Convertible Bondholders Won't Get Any Money From The Restructuring [View article]
I spoke with a guy who was short CMEDY and he didn't have that experience I don't think. The shares got cancelled. But either way Suntech isn't going completely dark like CMEDY did. It also hasn't been delisted yet, so I'm not worried about it.
Sources Suggest Suntech Power's Convertible Bondholders Won't Get Any Money From The Restructuring [View article]
I don't think so because with CMEDY there was a big buyer of the stock. No one has wanted to buy STP other than momentum traders and short covering. Those only go so far before the momentum gets reversed. There is also a lot more news coming from STP than CMEDY and it's more scrutized. I think the right thing will happen with STP. However, with the high borrow rate, it's possible that the stock will be held up by short covering, it acted pretty strong on Friday. That's why I'd only short with a little bit of money, it is a gamble. But I think the June or even July puts could double or more if news gets out that the equity will be cancelled or become worthless. What happened to EKDKQ with the cancelled equity could easily happen here, and at any moment.
Sources Suggest Suntech Power's Convertible Bondholders Won't Get Any Money From The Restructuring [View article]
"I know it is too foolish to expect STP to come out of bankruptcy but is there miniscule hope that it could happen"
I don't believe there is any hope that will happen. As I linked in the article, Suntech is selling its' projects to other solar companies at a cheaper price than what it cost Suntech. Suntech as we know it is being dismantled and will disappear within a few months.
Sources Suggest Suntech Power's Convertible Bondholders Won't Get Any Money From The Restructuring [View article]
As I said above, I'd recommend buying June or July STP puts. I think the $1 June puts are a good bet. Today they were selling for $0.23. Each put represents 100 shares, so you don't have to buy very many to make a good profit. You also don't have unlimited liability like you would by shorting if STP goes up for some reason. If enough people on Seeking Alpha buy puts, I believe this stock could swiftly go to new lows.
Sources Suggest Suntech Power's Convertible Bondholders Won't Get Any Money From The Restructuring [View article]
The solar rally is pretty much over, and STP is just held up by air and a short squeeze. I believe that once the truth gets out and people start buying puts on STP, it will plunge very easily. June $1 puts are $0.23, which I think are pretty cheap. It's a good lottery ticket gamble for a 2 bagger within the month.
Sources Suggest Suntech Power's Convertible Bondholders Won't Get Any Money From The Restructuring [View article]
Thanks. Yea, he said because it's too expensive. He said it would cost like $500K to force it into involuntary bankruptcy. Maybe one of the bigger bondholders will take the plunge.
InterOil: The $3.5 Billion Penny Stock [View article]
I closed my short position awhile back at a loss. I'm waiting for some big news for IOC before shorting again. I think any news, good or bad, will cause a heavy selloff in the shares.
Yes, I heard that too. From BofA: from stock loan: Suntech Power Holdings Company Ltd. (STP) – The borrow for STP continues to tighten up as recalls have flooded the street and buy-ins have started to occur. Stock price rallied today closing up over 48% on the day.
What does this mass buyin mean? Does it mean that STP holders want their stock back so they can sell it?
That's what I was saying. I like to see an actual catalyst before I short a tech stock, or any stock that is in a bullish sector. Otherwise you're just standing there wandering aimlessly, paying borrowing fees while the stock creeps up on you.
Sources Suggest Suntech Power's Convertible Bondholders Won't Get Any Money From The Restructuring [View article]
Sources Suggest Suntech Power's Convertible Bondholders Won't Get Any Money From The Restructuring [View article]
Sources Suggest Suntech Power's Convertible Bondholders Won't Get Any Money From The Restructuring [View article]
Sources Suggest Suntech Power's Convertible Bondholders Won't Get Any Money From The Restructuring [View article]
Sources Suggest Suntech Power's Convertible Bondholders Won't Get Any Money From The Restructuring [View article]
I don't believe there is any hope that will happen. As I linked in the article, Suntech is selling its' projects to other solar companies at a cheaper price than what it cost Suntech. Suntech as we know it is being dismantled and will disappear within a few months.
Sources Suggest Suntech Power's Convertible Bondholders Won't Get Any Money From The Restructuring [View article]
Sources Suggest Suntech Power's Convertible Bondholders Won't Get Any Money From The Restructuring [View article]
Sources Suggest Suntech Power's Convertible Bondholders Won't Get Any Money From The Restructuring [View article]
InterOil: The $3.5 Billion Penny Stock [View article]
Suntech: A No-Brainer Short [View article]
From BofA:
from stock loan: Suntech Power Holdings Company Ltd. (STP) – The borrow for STP continues to tighten up as recalls have flooded the street and buy-ins have started to occur. Stock price rallied today closing up over 48% on the day.
What does this mass buyin mean? Does it mean that STP holders want their stock back so they can sell it?
Uni-Pixel Is Still A Good Short Due To PC Industry Woes, And Probably Worth $8 Or Less [View article]
SolarCity (SCTY) - Partying Like Its 1999 [View instapost]
Akram's Razor: Short CommVault Now [View article]
Pixies: Why You Feel So Threatened? [View instapost]
Suntech: A No-Brainer Short [View article]