Downey Financial (DSL) reported horrible earnings Thursday and was downgraded to junk status yesterday. Dumb me got out of my short position at a tiny gain before it crashed 30%. Oops. I have done everything wrong the last couple weeks, so I have closed every position in my portfolio that I am not sure of that is not an ETF. That means I solely remain short Silver State Bancorp (SSBX) and long Doctor Pepper Snapple (DPS) and MVC Capital (MVC) as well as long a bunch of broad-market value ETFs. I continue to hold puts in FirstFed (FED) and Downey (DSL). [more]
Okay, a brief stop back from my 'hiatus' from blogging. Markets went crazy last week. Barron's today said that it is time to buy some financial stocks. They are wrong. I am not an eternal pessimist, but every indicator I see says that house prices still have to fall 20% more in bubble states, maybe 10% more elsewhere, and that is not accounting for a recession. Plus, consumers are more indebted now than ever before. It might be time to stop shorting banks, but it is certainly not time to buy them (in case you are wondering, I am holding onto my three bank shorts, even despite 100%+ rises in their stocks over the last few days). [more]
Expect to see few posts from me in the next couple weeks. I would love to blog a lot more right now, but I am busy with other things (including some fun things--it ain't all work!). To see what I’m up to, try reading my Twitter Feed. I will sometimes post comments about stocks I am trading there. I closed some bank shorts and increased others this morning.
If you didn't hear the news, Indymac (IMB) is one step closer to death after announcing that it will originate no new loans and that it is considered to be under-capitalized. The stock was down 30% in the after-market. Remember, Bank United (BKUNA) is next on the list of banks to go bye-bye. To quote ChimpInvestor, "no cutting in line." [more]
I'll be heading up to Chicago (actually, to Crystal Lake, a northwest exurb of Chi-town) today for the holiday weekend. Any Fools in that area feel like hanging for a bit and talking stocks? First round of drinks is on me. Just PM me with your phone number or email if you are interested. [more]