Wednesday, September 24, 2008

Covered my WB and GS...

I sold my WB puts yesterday and covered my GS puts this morning. Made about $750. The trading environment is tricky and I think all these financials have a long way down before they go back up.

The news on GS seems puzzling, the media is hyping that it is all good, but the stock offering scares me? Why do they need $5B more, if they are so well capitalized? Why are they issuing preferred stock? It sounds like they are in a cash crunch just like all the other firms that have collapsed. Every other financial firm did the same thing. Raised money by offering preferred shares or issued more stock. Something doesn't seem right with this story.If I were Jim Cramer at his hedge fund, I would be long the preferred shares and shorting the common? Oh wait, we cant short now.. Wow, amazing how that has worked out.. I guess Paulson is helping out his old firm after all..
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