Local Lender Stock down 50% this AM…

[JWM in SD]

…Accredited Home Lenders (LEND) got to see their stock lose 50% of it’s value from the previous close before the market even opened. OUCH!!!

Now tell me that this is not going to get ugly…

[bub]

Ugly oh Yeah!
Now if Mr. “Biggest no brainer in the history of mankind” will get ground into dust. I’ll be a happy guy.

[CardiffBaseball]

Lenox Financial’s Wesley Hoaglund, is da’ man. As much as I hate his ad, I had to take the extra step to look up this dolt, so technically he’s won. Actually no unless I take a loan out from him that isn’t true, but still, the hook, no matter how dumb, is likely to rope in some cattle.

[Carlsbadliving]

I saw George Chowderhead on 7/39 this morning. Now I’ve never listened to him on the radio before, so I just usually see him every morning on the news, but today he blew me away. He is such a real estate whore.

He mentioned how AH Lenders would be down about 50% at the open today and that they’ve gone from a stock price of about $60 to around $6. He also said they’d likely have layoffs among their 2,700 employees.

Then he goes on to say that the subprime problems have really been overstated by the media and they are really only a wall street problem and not a mainstream problem (WTF?). The said that he expects that the subprime problems will have no significant impact on the housing and mortage markets.

Are you kidding me? How can he say this stuff? He’s separating Wall Street from reality. Like the stock price tumbles and bankruptcies and layoffs are only happening on Wall Street. Ya, sure George none of those things are effecting anything in the real world.

This guy needs to be canned. I’ve never seen such a biased reporter on any news program before.

[anxvariety]

Many of us here own this stock short! I actualy bought in to the June 15 puts yesterday and they’re up 75% today.. but I’m going to sell at some point today.. because I don’t want to risk this thing getting delisted.. but, if you look up the thread ‘Profit Opportunity #1 by Rightside’ he mentioned (LEND), and deadzone mentions(NEW) – just as many other people have in other threads.. but if anyone had held from the date of that thread they’d probably be up about 1000,5000%+ in some of those options..

What’s next? How about CFC? Ive done well over the last couple weeks and I think they’re next to go down or take a big hit.

[Anonymous]

Yes, CFC is the next logical profit opportunity. I already own bushels of Puts on CFC and am thinking of some more. I don’t expect it to implode to the level of the pure subprime companies but it should still drop hard this year.

Beyond CFC, I don’t see any great lending companies to short. Anybody else have some ideas? I think the next round of opportunities are the homebuilders, and later, the companies like HD and BDK that have relied on the housing boom.

[Anonymous]

I keep wondering how much CFC has still to fall. If they end up being forced to buy back loans, they could be in trouble, but they have reserves for this sort of event. What is everyone’s analysis of CFC? I too am wondering who is left to short. I’m still looking at the various builders right now.

[Anonymous]

I forgot to mention: As for other lenders to investigate for shorting, check out AHM and FED (S&L).

[cashman]

If you believe recession will be an outcome of this mortgage/housing mess, as I do, then most retailers will suffer this year. I shorted Costco a few days ago just before earnings, and guess what. It dropped immediately after the report. Fell short, just as I expected. I think this will be the trend for a few more quarters, so jump on the train, it’s just leaving the station.

[anxvariety]

Print out a piece of paper with 100 stocks on it that have propsered
over the last 10 years.. next attach it to your dartboard, walk 10 steps back, cover your eyes, turn and throw dart.. there’s your stock to short. If you don’t have a dartboard, you can do a pin the tail on the realtor version of this game..

One consideration.. maybe stay away from the inelastic stuff… they may not drop as much and may in some cases even have an inverse relationship with recession(cigarettes, alcohol and gambling etc)

[barnaby33]

Sin does well in recessions. AB is probably a stock to buy if its reasonably priced. I know I ain’t selling any of my MO. What really kills me is that monday I bought my first put ever, 15 dollar january puts on LEND. I was going to sell them but got stuck in an all day meeting today and the stock went up 2.00 a share. aaaaarrrrggggghhhh.

If the stock gets de-listed, does that make your puts unenforcable?

Josh

[Anonymous]

I sold my NEW puts after they were delisted from NYSE, they were relisted over the counter as NEWC and are trading at .80 or something.

[barnaby33]

LEND is up again, like a rocket. I think I am buying a few more puts on it.

Josh

[Happy renter]

NEWC.PK is up more than 100% this morning! It is a gambling stock if you want to take the chance.

[Author]

Posts