***Official*** 2011 Stock Market Thread

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Miramonti

Miramonti

Lifer
Aug 26, 2000
28,653
100
106
KB said:
How many people here had been holding their DNDN?

Did anyone here on the thread recommend this MDVN and I missed it?
Click to expand...

couldn't tell you, but these two on the same day highlight pretty well the risks/rewards of playing pharmaceuticals.
 
Azurik

Azurik

Platinum Member
Jan 23, 2002
2,206
12
81
jjsole said:
Just curious...you mentioned you don't think the stock will do much >$18, and you're selling covered calls which can earn some additional premium at this price but also locks in your max profit for those covered shares. The premium can earn you some extra $ but you're still long the stock and heavily exposed on the downside after the ruling.

If you don't think it's going higher, why not liquidate some shares? On the other hand, if you want to ride out the ruling and don't mind being exposed on the downside, don't you also want to have unlimited upside potential?

Like I said, just curious and being of analytical nature, and not 'questioning' or suggesting anything. :)
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I think it's going to go higher once the jury makes a decision, but since I know when the jury is not working, I can conclude that more likely than not, nothing material will happen. Take for example this week. I know the jury doesn't work Fridays at all as agreed upon when they started deliberating. I also know that the jury was taking half a day off today, and requested Tuesday off next week. With this information, I knew the jury wasn't going to decide until next Wednesday at the earliest, so I was very comfortable in selling Nov 4 weekly covered calls yesterday and let it expire tomorrow (Friday).

Next week, I can sell covered calls Monday morning and than buy to close them on Wednesday morning before the jury convenes. This is just slicing some profits here and there, and not all of my shares are covered.

If RMBS goes higher based on technical strength or just follows the market upwards, it's not going to be dramatic enough. If my shares do get called away though this (let's say RMBS goes up to $19), I can just buy it back in the open market for little additional cost.

I have a little bit of protection as I have some December puts.
 
Miramonti

Miramonti

Lifer
Aug 26, 2000
28,653
100
106
Ah ok, this is a play against the jury's minimal schedule. Very nice incorporating that info...little risk of a huge upside move during that time and an opportunity to gain some additional premium in the meantime. :thumbsup:
 
chihlidog

chihlidog

Senior member
Apr 12, 2011
884
1
81
I was away from net access all day until now, checked, and my THQ is up to $2.40. Holy return on investment! I'm selling it at open tomorrow.
 
C

cirrrocco

Golden Member
Sep 7, 2004
1,952
78
91
who is buying GRPN tomorrow. buy and sell. I am trying to do a market open purchase, but my broker shows the fucking stock name but I cant seem to do anything with that.

fuck I am clubbing till 2 am PST and then need to get my ass up at 6.30 to see if I can buy some GRPN and sell by end of day.

Good luck tmw, if you guys are purchasing.
 
chihlidog

chihlidog

Senior member
Apr 12, 2011
884
1
81
I dont know what groupon is going to do short term, I can see it going either way, but if I was going to buy it I'd short it long term.
 
KB

KB

Diamond Member
Nov 8, 1999
5,406
389
126
cirrrocco said:
who is buying GRPN tomorrow. buy and sell. I am trying to do a market open purchase, but my broker shows the fucking stock name but I cant seem to do anything with that.

fuck I am clubbing till 2 am PST and then need to get my ass up at 6.30 to see if I can buy some GRPN and sell by end of day.

Good luck tmw, if you guys are purchasing.
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This pretty much sums it up for tech IPOs lately:

http://www.theatlantic.com/business...pon-dives-into-the-tech-ipo-bloodbath/247893/

You have 1 - 3 days of pop and then its downhill from there. In fact LinkedIn is down 8 bucks today and it has a PE ratio of 1995.
 
R

Riverhound777

Diamond Member
Aug 13, 2003
3,360
61
91
Just found out the company I work at should be getting some shares of the Groupon IPO. Not sure how much though. I hope it does well! If it does really well I might even see some of the earnings :)

Edit: we got 150k shares.
 
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C

cirrrocco

Golden Member
Sep 7, 2004
1,952
78
91
Riverhound777 said:
Just found out the company I work at should be getting some shares of the Groupon IPO. Not sure how much though. I hope it does well! If it does really well I might even see some of the earnings :)

Edit: we got 150k shares.
Click to expand...

when does it hit the market... sheesh ppl not seeling their stocks :)
 
C

cirrrocco

Golden Member
Sep 7, 2004
1,952
78
91
The same kinda stuff happened when I got in LNKD the day of IPO. Made a decent chunk that day.. it started big, slowed down and then picked up later in the day.

I hope to see the same type of trend today.
 
Imp

Imp

Lifer
Feb 8, 2000
18,828
184
106
cirrrocco said:
The same kinda stuff happened when I got in LNKD the day of IPO. Made a decent chunk that day.. it started big, slowed down and then picked up later in the day.

I hope to see the same type of trend today.
Click to expand...

The price for IPOs usually start completely inflated cause all the big companies/banks/rich people get first dibs, pump it up... then dump it...

Never touching tech again except for MSFT and GOOG. Maybe AAPL.
 
SunnyD

SunnyD

Belgian Waffler
Jan 2, 2001
32,675
146
106
www.neftastic.com
Imp said:
The price for IPOs usually start completely inflated cause all the big companies/banks/rich people get first dibs, pump it up... then dump it...

Never touching tech again except for MSFT and GOOG. Maybe AAPL.
Click to expand...

I think GRPN is particularly vulnerable. When they started their "idea", the concept was pretty damn hot. Now, well, from experience, the quality of their product has gone down significantly - a year ago I can personally attest that there might have been one deal every two weeks that interested me. Lately, I've seen the same offers week after week for products that I have no interest in - mostly laser hair removal and whatnot. Another big hit against them is they used to have fairly substantial national deals, for example the Barnes & Noble groupon. Again, lately, the only things I'm seeing are purely regional.

I honestly think that Groupon was expecting to ride the IPO wave thanks to Google's bid somewhat 'validating' their strategy. But when you look at their books and their overarching strategy, the analysts are 100% correct - groupon's business model is generating little to no profit and is completely unsustainable. I have a feeling after the first couple sets of quarterlies, we'll see GRPN share price in the single digits after the public balance sheets validate what analysts are saying about them.
 
IHateMyJob2004

IHateMyJob2004

Lifer
Sep 29, 2004
18,656
68
91
And to state the obvious. GRPN is a big deal because those on the ground floor (wall street 1%ers) buy at a lower price and dump on day one. Their business model has little to do with making HRPN any better.
 
Azurik

Azurik

Platinum Member
Jan 23, 2002
2,206
12
81
Hmm... 5,000 shares of RMBS got called away with the Nov 4 $18 calls I sold. Need to rebuy them on Monday morning.

So let's all pray no good news from Greece and the rest of Europe this weekend? I don't want a 3% rally off the gate and having to buy back my shares higher.
 
L

lothar

Diamond Member
Jan 5, 2000
6,674
7
76
IHateMyJob2004 said:
Analysts are saying groupons business model doesn't work? TIME TO BUY!!_
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1240265992468.jpg
 
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