train wreck

Loading...
Symbols:
Authors:
comments3
  • Positive ratings 0
  • Negative ratings 0
  • Net rating 0
Filter comments by:
Highest rated Latest comments
Or filter by symbol:

Latest Comments
3 Comments

    • Wed Oct 15th 15:49 PM
      |
      Rating: 0 0
      Commented on:
      Why Short Sellers Are the Heroes of Wall Street
      This is a bogus story perpetuating the views of a few hack economists.

      "They couldn't even find evidence of bear raids on 19 beleaguered financial stocks." I suggest you take a closer look at the raw data (www.deepcapture.com/wp...) before supporting these allegations. Morgan Stanley's market was raided in the days leading up to teh ban on short sales in September and, if you make note, the level of daily short sale volume was near identical to that which it was before the ban was put in place. And to think, with restrictions on short sales, how can one say sales that should not have occurred did not play a part in the market sentiments.

      The problem with these economists who have become the mouth pieces of the hedge funds, they never seem to present the raw data that supports their "conclusions"...

      View article »
    • Fri Oct 3rd 18:12 PM
      |
      Rating: 0 0
      Commented on:
      Hedge Funds Eat Their Young
      I wonder, could this be why short selling funds do not want their positions reported to the public? They don't want long funds doing to them that which they do to long funds.
      View article »
    • Mon Jul 21st 09:41 AM
      |
      Rating: 0 0
      Commented on:
      The SEC's Campaign Against Naked Shorting: Misguided or Right On?
      "the fact that not only have we never naked shorted -- our prime broker I'm sure wouldn't allow it"

      This is extremely wrong. If the prime brokers do not allow it, that who exactly is creating the aggregate $8 Billion daily fails to deliver in the system today?

      I ask Mr. Tilson to respond to this simple question before he makes such inaccurate and deceiving comments. Two types of trading scenarios will be described. How is Tilson's fund treated?

      Trade I.

      Hedge Fund XYZ enters an order to purchase $500,000 in stock in company ABC. By the third day that fund is expected to put up capital to support the payment for securities purchased. If after 3-days such capital is not provided the broker dealer will:

      A.) Sell out the position as much necessary to cover the expenses including, if necessary, selling out additional positions to cover the fees.
      B.) Contact the fund and provide them limited relief on payment.
      C.) Contact the fund and notify them of the error and provide them indefinite time to make good on payment.

      I believe by law the only answer acceptable is A.)

      Trade II.

      Hedge Fund XYX enters order to short $500,000 of securities in Company ABC. The hedge fund has either provided the locate or relies on the BD to do the locate. After 3-days the trade fails settlement because no shares have been borrowed to settle. The broker-dealer will:

      A.) Go to the market and purchase shares under guaranteed delivery to cover the fail?
      B.) Go into the market and attempt a buy-in (no guaranteed delivery) looking for available shares at the market price. If the market does not have shares available that will settle buy-in terminated.
      C.) Let the trade fail indefinitely because an original locate was made so why bother to settle unless called upon by the receiving client.?

      The only acceptable answer to parity Trade I response would be A.) In both cases the Broker Dealer would have committed to the contract executed. What Tilson would have you believe is that answers B & C are acceptable answers and they are not. No private investor or institution investing for proprietary accounts has the right to effectively use the market making exemption from settlement. It has been the abuse at this level that has allowed fraud and manipulation to take place.

      So Whitney, are you immediately bought in under guaranteed delivery when the locate you provided failed to result in a borrowed stock and delivery or did somehow your prime broker keep the trade active and hold the failed trade liability? If not, you have engaged in Naked Shorting and I am sure that your traders are fully aware of a trade in which they have had a bad locate.



      View article »