secmaven

Selling the Short Sellers Short: Another Sign of Trouble

The SEC took away the naked shorting opportunity starting MONDAY in only 19 financial stocks including C and BAC as the banks. Did you see what BAC did in three days as the naked shorts covered rather than borrowed stock to get in compliance? They knew they had lost control in BAC and decided to cover even if it meant paying 10, 20, 30, 40, 50% more than the low. Don't worry, the borrowing requirement goes away in 30 days and actually went away even on Monday for "market makers" whoever the Hell these folks are (GS???) in this day of instant computer matching of buys and sells.

Barnes & Noble's Earnings Call from a Borders Investor's Perspective

Riggio bought hundreds of thousands of shares to support BKS the last two times the stock price went below 30 in 2008. Let's see what he does this time around. An acquisition of BGP would presumably be stock for stock so if a deal is planned, my guess is that he will tap his margin account once again. If no deal is planned BKS stock will decline for the reasons the funds are selling. The market for print books is shrinking by the month and one only has to consider what happened to Tower Records to know what is happening to the rest of the stuff BKS sells through its expensive real estate. Adding hundreds of additional lease obligations to the liability section of its off the books balance sheet will hasten the impending bankruptcy. I know BKS has a dot com operation that competes with Amazon. But since Amazon has taken years to turn even a modest profit is the BKS division adding anything to the bottom line yet? Not much sector analysis in its financial statements.