prospector

Housing Market Tracker - Will Thornburg Sink or Swim?

I haven't been investing in stocks for long, but it seems to me that the TMA mgt really does have a say in how their stocks perform. Especially now after their stock has tanked. What investors are looking for is news, whether good or bad (preferably good) on one certain company, sector, or the economy.

What TMA must do is create some good news for itself. This good news would come in the form of acquiring new capital. If they are able to get Granddaddy Deeppockets to invest $1Bil into Thornburg's nearly perfect portfolio, this will create interest in investors to buy their stocks, which in turn, raises more capital for thornburg. For example, on Monday, when TMA stocks tanked, at about 2:30pm the stock was down 60%. TMA created good news by loaning $992 Mil to shore up their books. When this was announced, the stock shot up 40% from $3.53 to nearly $5. Don't you wish you'd bought some shares at this level when TMA was certain to declare bankruptcy tomorrow? (This is practically what the news was telling everyone. This is why the stock tanked.)

All TMA has to do is create good news in the form of acquiring substantial sums of money, then you'll see a nice return to normalcy in the house of TMA.

Please note that whilst the whole subprime issue is abounding in the news, there will continue to be volitility in the financials. So "normalcy" is relative.