Troy Peterson

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2 Comments

Thu Oct 11th 12:39 PM | Rating: 0 0
Commented on:
Downey Financial's Problems Run Deep

While I agree with your analysis on DSL, it seems a bit silly to assume that institutional investors do not "know what they own in the stock"...

In fact, it seems that institutions have aggressively shorted 10Mln+ shares of the stock, which is more than half of the float outstanding. This level of shorting is potentially as irresponsible as Downey's loose lending practices! I think the author recognizes this risk, given that he is long puts instead of short-the-stock, but think individuals might be well-advised to follow the same path (if they are betting against DSL).

Great post though.
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Thu Oct 11th 12:39 PM | Rating: 0 0
Commented on:
Downey Financial's Problems Run Deep

While I agree with your analysis on DSL, it seems a bit silly to assume that institutional investors do not "know what they own in the stock"...

In fact, it seems that institutions have aggressively shorted 10Mln+ shares of the stock, which is more than half of the float outstanding. This level of shorting is potentially as irresponsible as Downey's loose lending practices! I think the author recognizes this risk, given that he is long puts instead of short-the-stock, but think individuals might be well-advised to follow the same path (if they are betting against DSL).

Great post though.
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