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Originally Posted by Finnster
Oh IDK. Its Monday and I've had little sleep and I'm thinking weird things. Sold out one of my positions right before it climbed 11% today. Maybe I should step away from the keyboard before I do somethign dumb.
IDK on the Lehman. I guess the thing I don't understand is what the hell people are buying? If if did gain any value, wouldn't it all just go to bondholders and lawsuit claimants? Some story out today claims $100B in liabilities. What would stockholders get?
That doesn't mean the stock can't go up, I just don't get the point. Sort of like the MTLQQ. Even the CEO is saying not to buy the stock, its future price will be 0, its a liquidation Co, and any new GM will be under a new IPO unconnected to this ticker, but millions of shares trade daily. ? I know I have lots to learn, only really started trading this year, but this just doesn't make sense to me.
Anyway.. I think perhaps I'll ride w/ PNX for a bit. They got downgraded today, but the stock didn't budge, and actually climbed to a new high. Lots of volume as well. There was a ton of insider buying a while back in Mar as well. We'll see if my portfolio survives myself yet.
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A day trader will go in make his money and get out, I'm more of a long term guy and usually try to hold a stock as long as I can (DRYS sucks lol). So this might not be for everyone. Sometimes, what might be down in the morning will go up in the afternoon and some will just go to the roof the next day.
The $100B thing is Lehman UK which makes no sense at all. Lehman has real cash and a lot of assets which can be used to pay up, but it's the traders who will decide where the stock will go. Cheap stocks are mainly what the day traders I know buy. They go in and buy more shares (It's what really counts at the end) and hope the stock moves and they make their money on it. I know guys who can easily make $5-10K a day and I'm sure they're using MTLQQ to make some profit. In the end it's all about going in and getting out at the right time even if a stock will no longer be there.
I like my 25K shares of PNX, I didn't go big there just to see what it would actually do and it's up $1 for me. I'll keep it at that for now. I just hope Lehman can go to $1 before the game ends. I'll just ride this out until the end. My portfolio has been crazy since the biggining. It went to the center of the earth and now it's making sure Pluto is really a planet or not lol. If Lehman goes to $1, it will be looking for new life in a new solar system. What a ride for sure.
Now for real though, investing in anything is risky and one must do his/her homework before investing.