We certainly missed this one when it was trading at a mere $1.50 the other day. Our sources show that the hedge funds shorted 17,000,000 shares of this stock and were forced to cover! This is a transportation stock and was due to come back to a "real" valuation multiple, and not a BK multiple. People overreacted and over sold this stock, just like many others have been oversold when the HF's hammered the bids on good quality stocks because their investors just plain "wanted out" at any cost a few weeks ago. What a shame! Many good stocks got massacred! We follow a few here. I think the shipping sector is going to bounce next once they get the banks online with their letters of credit to be able to support all the new China orders recently! Barclay's Bank will probably lead the way like Lehman did from what we are hearing. Get ready for an explosion when this happens because most have prepared for the worst, and well, we just don't see it. People still need to eat and the world economies need supplies and materials unless we're missing something here....consumption will still happen on a Global basis. Stay tuned.
Friday, December 05, 2008
YRCW Shorts Were Crushed This Week
We certainly missed this one when it was trading at a mere $1.50 the other day. Our sources show that the hedge funds shorted 17,000,000 shares of this stock and were forced to cover! This is a transportation stock and was due to come back to a "real" valuation multiple, and not a BK multiple. People overreacted and over sold this stock, just like many others have been oversold when the HF's hammered the bids on good quality stocks because their investors just plain "wanted out" at any cost a few weeks ago. What a shame! Many good stocks got massacred! We follow a few here. I think the shipping sector is going to bounce next once they get the banks online with their letters of credit to be able to support all the new China orders recently! Barclay's Bank will probably lead the way like Lehman did from what we are hearing. Get ready for an explosion when this happens because most have prepared for the worst, and well, we just don't see it. People still need to eat and the world economies need supplies and materials unless we're missing something here....consumption will still happen on a Global basis. Stay tuned.
