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MBIA Surge Accelerates As Short Squeeze Gains Traction
As regular readers know, back in September 15 we speculated that MBIA could be the next Volkswagen-type short squeeze courtesy of a rising short interest and huge Institutional shareholder base (amounting to 96% of the float for the top 30 accounts) not to mention the possibility for a BAC settlement that could be as large as the company's current market cap. The recent BTIG upgrade only confirmed that view. As a result the spike now continues, and the stock has returned 30% since our initial observation. If indeed this is caught in a short squeeze loop, the final return could well be in the triple digits, especially since the short interest is now the highest since May 2010!
MBIA since September 15:
The institutional ownership:
And the short interest: now highest since May 2010:
For those unfamiliar, here are our previous views on the name:
Sept 15: As Bank Of America Implodes, Is MBIA A Volkswagen-Like Short Squeeze Candidate?
November 30: MBIA Soars Following BTIG Initiation With $22.50 Target
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But explain why JPM, GS, JEF, MS are all up 7%? This all happened within half an hour.
One note of caution on MBI: if the Court rules in favor of BAC/Countrywide, that will wipe out the $2 billion asset MBI has on its balance sheet, rendering that part of the company insolvent.
maybe one should get OTM calls on BAC and MBI and OTM puts and see what happens.
come back in the pool.
no sharks here.
water's nice.
LOL... Don't let the blood from the last feeding frenzy scare you away!
Um hello, because it's a manipulated market.
What retail investor is buying that shit!
Which leads to the question of who buys the shit when its time for them to cash out?
draw the chart, vanguard financials. hard to explain, but if you draw a few charts they hve been in an over bought condition then you saw tbt sell off, moving tlt back to baseline, same happens with stocks. the switch. still over bought
Corrupt and broken markets at work. Short interest should not be reported. It is just another tool for market manipulation to occur. Btw Volkswagwen was still a short all the way up...
And everyone who was short at the top, when VOW was the world's most valuable company, went bankrupt.
Thanks Tyler for the lead. My MBI calls are up 4 times in 2 days.
You guys help make gambling fun again.
I hope you dumped those now.
I sold off some. Not sure when I'll exit. I must consult with robo, first.
Take your money and run. Don't forget your Zerohedge donation.
I disagree with your statement. Should the long only postion be reported? If people who are short, or long for that matter, don't get that it's a crowded trade then they deserve the pain that they recieve. I agree that VW was still a short, and I think MBIA is too. But so does evrybody else. That's why I stay away.
"I can get no remedy against this consumption of the purse: borrowing only lingers and lingers it out, but the disease is incurable."
- Shakespeare
This shit show looks like a good short for a quick 10 points
nope
Bullish :
http://www.guardian.co.uk/world/2011/dec/02/pakistan-military-return-fir...
Pakistan military ordered to return fire if attacked by Nato forces
What were their previous orders - to play dead?
AT 1000 Euros using puts that was the easiest trade ever...
Yep.
Lots of "junkers" with high short interest are getting bought.
Whatever it takes to "make your year".
Meanwhile, the "Ratio Traders" are killing it again, as NEM is dragging the GDX/GLD ratio back to the 2011 lows.
Everyone is selling gold stocks and buying financials.
lol @ "everyone"
do you realize what you're actually typing here?!
Whatever. "Killing it" since DJI was at 14k, right?
Robo still going long on lulu. Buy some more lulu, step in that doo doo, der robo.
You go do that then.. hypocrite troll who rarely ever answers questions back about his own stock picks. What the hell ever happened to your recent picks of TZA, LULU, NFLX, LNKD, and et cetra?
Dollar skyrocketing and stocks rise? WTF is going on?
Opportunity to get short being placed right in your little hands....
definately, up 135 eurusd pips already
EUR next stop 1.329? Bring up and hourly chart nast gap there.
This whole thing was a trap, that's what is going on.
The Squid is up 8.5%
They are making sure that Summer 2012 at The Hamptons will be a huge season.
With the best hookers and escorts that money can buy.
Too much blow still in your nose when you claimed you did all those high priced eastern european hookers? how's the "girlfriend" going? Did she like the christmas tree you got her from that "crowded" "what-there's-no-recession" Home Depot?
Something tells me his "girlfriend" just stared back with a plastic look on her face with one of the 3 vibrating orifices agape.
pods
The Goldman Sucks Jan 1 $170.00 Goldman Sucks today $100.00 . Let the bonuses and bribes flow let the shareholders eat chum .
Anyone think this market is Not broken. Fins in the spotlight today, no getting around it.
"Corzine's ass cherry will be broken soon"
@Dr Engali my belief is neither the longs nor short positions should be reported, except in the case of takeovers (put a threshold at 25pct for disclosure maybe). It defies the purpose of markets to expose to everyone your positions.
If this interest wasn't reported, you do realize then the broker dealers would all have the upper hand right? If you don't think that banks wouldn't share short interest info with each other, I'd like to have what you're drinking.
Republicans craft bill to prevent IMF bailout of EUROZONE. Oops.
Rob McEwen's UXG getting Bre-X'd today
http://bigcharts.marketwatch.com/kaavio.Webhost/charts/big.chart?nosetti...
Should change your handle from Robot Trader to "One Hand Clapping......"
This move may be what I was anticipating. They need cash, and creamin shorts is the quickest way to raise capital.
Desperate measures, during desperate times. Sell your silver and gold? I don't think so.
Does this panic selling prove an investment thesis wrong? It does if you believe jumping off a cliff is right because everyone else is doing it.
http://rosenthalcapital.com/blog/2011/12/precious-metals-outlook-as-liquidity-crisis-eases-look-for-precious-metal-leadership-resurgence/
Another nice ongoing short squeeze is CHRS (Charming Shoppes). Up 30% this week on a good earnings report. 93% institutional owned with a 17% short float. One to watch!