New Century (NEW) is done and that was a given when it hit $5 a week ago and lot’s of people including me called that (Stock was $60 a year ago)
Tom Brown is a big boy but he is being shellacked here and he is not the only one.
Today they took out and shot (again) his other big holding – Acccredited Lenders (LEND).
If I was a gambling man, I would say it’s liquidation city for him. It may also be worth gambling that First Marblehead (FMD), a recent Wallstrip stock, is in the vultures sites. That has been creamed and could be torched if he liquidates. I don’t think it has any ties to the recent debacles, but the vultures shoot first and ask questions later.
One third of all stocks do the BIG ROUND TRIP to ZERO and that is why I don’t buy falling knives anymore. The few that go to zero that you and your conviction are buying all the way down will leave you broken.