Tom Brown at bankstocks.com is smart.
Last week, already buried in SubPrime stock hell, he wrote a post entitled:
“It’s Time to Get Greedy”.
The headline is coming back to haunt him today. His stocks are all down another 30-60 percent – TODAY. Here is the Bloomberg update on New Century (NEW) and the rest of the group . Amazing reading.
When you make focused bets like he is, YOU ONLY HAVE TO BE WRONG ONCE! He is very wrong. He may not even be in the game to see how it really plays out and have the chance to get proven right!
The market is a cruel animal. It finds your weakness. This story is one that I will follow for a while, especially since I read his blog and site daily.
Understand, that his pain can lead to further liquidations and further drops in the stock – UNRELATED TO THE FUNDAMENTALS. Also know that the hedge fund sharks smell blood and are circling these positions knowing who the doomed holders are.
For the Subprime lenders, Goldman and the rest of the banks are going to have to step up and extend some terms and credit to these lenders – OR IT’S OVER!
I believe the market is all about new opportunities and you never use the “greedy” word with stocks. Live to fight another day.