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  • Q1 Results From The Silver Bay Realty REIT Experiment Still Leave Questions  [View article]
    NAV can be varied throughout the period. While I cannot predict the future home prices, I believe that once the interest rate is back where it should be at historical average, the home price will take some hit. In addition, the rent price increase has been stuck - I own few rental properties and I actually witnessed that the rental price went down in the area I have the properties.

    The significant concern I have with the company is its relationship with the afflilated company who is pretty much running the company. The compensation package is very much favorable to the affiliated company and the shareholders are losing out. Also, the afflilated company holds the 10% dividend preferred shares. Why would you anyone sell preffered share with 10% dividend during this low interest rate environment? The company is for the afflilated company, not for the share holders. They are going to drain the cash and the company value.
    May 21, 2013. 10:53 AM | Likes Like |Link to Comment
  • Q1 Results From The Silver Bay Realty REIT Experiment Still Leave Questions  [View article]
    The advisory fee is also based on the market cap. With the current market, it's set to be about $11M/year top of other expenses. In addition, $SBY has a 10% dividend preferred shares. Reading through the 10k, the whole compensation/expense is to benefit the affiliated company, not the shareholders. $SBY is currently under my watchlist for shorting.
    May 18, 2013. 03:29 AM | Likes Like |Link to Comment
  • Chesapeake: A Lucrative Buy At $18  [View article]
    You should selll CHK 30.00 Call
    Jun 22, 2012. 11:35 AM | Likes Like |Link to Comment
  • Markets are killing the chance for QE3 by frontrunning the action (continually bouncing on hope of Fed action). The "liquidity put" will only get triggered at substantially lower levels, says Citi's Mohammed Apabhai. He sees 1,285 in the S&P as a key technical level (S&P is currently 1,325) and additional QE coming only if the market were to decline 12% from here.   [View news story]
    Yep... this is almost an idiotic statement. If the Fed decided to act on something, it's based on the economic numbers such as manufacturing, unemployment etc. S&P number is a reflection of the economic data plus speculation. Therefore, the Fed will not use S&P number to decide whether QE3 should be initiated or not. My guess is ECB will announce their easing in July, then the Fed will do QE3 in Aug.
    Jun 22, 2012. 08:30 AM | 2 Likes Like |Link to Comment
  • Buy In May And Sell Away Update  [View article]
    I think that Todd meant to say is that short your position in early/mid Apr and long in mid/late May. I think it worked out okay so far.
    Jun 19, 2012. 10:39 PM | Likes Like |Link to Comment
  • Chesapeake: A Lucrative Buy At $18  [View article]
    Normally I don't like to buy puts. I rather sell puts. If I were to buy any equities, it would be through selling puts because it can expire worthless. I can almost win in most situation, especially if I sold a put on way out of the money. In my case, $14.00 strike price was approximately 22.22% below the closing price of that day. I figured if the stock goes below 22.22% below within 4 weeks, it's a buying opportunity anyway (at least for $8-11B company). I considered both market perception and the underlying facts.
    Jun 19, 2012. 12:27 PM | Likes Like |Link to Comment
  • Chesapeake: A Lucrative Buy At $18  [View article]
    The main reason seems to be that the salvage value might be higher than its trading value. As I stated above, I was thinking around $20/share is where it is at.
    Jun 19, 2012. 11:19 AM | Likes Like |Link to Comment
  • Chesapeake: A Lucrative Buy At $18  [View article]
    I pulled a trigger on April 19th and 20th, and sold naked puts on CHK May 12 11.00 Put and CHK May 12 14.00 Put. In retroperspective, I pulled the trigger a bit early, but I made $215.00 leveraging $1,200.00 within 4 weeks. I kinda wish I sold one on 15.00 Put, so the options would've been exercised.... I could sold it back at $17.00 within a week. I thought that the book seemed to be fine. So, I sold those puts on speculation and thinking the stock is still worth at least $20.00/share.
    Jun 19, 2012. 09:36 AM | Likes Like |Link to Comment