Greg Weston

Redwood Trust: From $30 to $4 by Year-End?

SR9: I was never able to get shares of CRZ to borrow for very long, so I shorted via options, all of which expired last year.

The one time I have ever been long an mREIT was snapping up some NCT when it fell below 30 cents. I sold it a couple days later for a nice profit.

I made a profit on RWT, though not as much as I would have liked, nor as much as if I had just went short SPY the same period.

In the end they were able to find secure financing with their $12 equity offering, and around that point I gave up and covered my position. The company is still somewhat overvalued, but they are in no danger of falling to $4, as they were before the offering.

I lack the time right now to do the DD needed to short individual names, and right now am only short CS and one smaller financial that I investigated may write about soon, but will not mention publicly.