uh oh Miami

4Q Basket Case

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Nov 8, 2004
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Thanks for bringing this to my attention, I’m actively Looking into strategies that will let me Short MSPR
If you do that, just understand that you’re gambling.….which is fine, so long as you go in eyes-open.

The pre-opening price this morning (July 15) is $1.70.…down almost 83% from the price immediately pre-listing. So a few things to consider:
1. Your potential gain from a short is limited to the current price, which is already in the toilet.
2. What’s tanking the price is that investors don’t have a clue as to the true value of the claims MSPR is pursuing.
3. Your downside is theoretically unlimited, but it would not be unrealistic to lose more than the initial short.
4. This stock is thinly traded, which introduces a market liquidity question that could affect your ability to get out if you want to.

The claims might that MSPR is pursuing might be totally worthless. Or there might be some value….but nobody knows how much. The strong feeling is that, if the claims have any value at all, it’s nowhere near what was represented in the listing documents.

One significant pitfall with a thinly-traded stock: If your short gets out of the money (i.e., the share price actually rises), you could get caught in a short squeeze you can’t cover. That’s where you want out, but can’t find enough shares to buy to cover your short — that’s where the thinly traded part really hurts. So you’re paying margin calls, and are helpless to stop the music until you can accumulate enough shares to cover the short position.

Shorts are a great tool, and contrary to what some people believe, actually help to stabilize the markets. But to make money with them, you not only have to be right on the general direction of the share price, you have to be exactly right on the timing, or be willing to make margin calls.

It’s hard enough when you do have reliable financial information. You cross the line from investing to gambling when you don’t have reliable information.
 
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AlexanderFan

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If you do that, just understand that you’re gambling.….which is fine, so long as you go in eyes-open.

The pre-opening price this morning (July 15) is $1.70.…down almost 83% from the price immediately pre-listing. So a few things to consider:
1. Your potential gain from a short is limited to the current price, which is already in the toilet.
2. What’s tanking the price is that investors don’t have a clue as to the true value of the claims MSPR is pursuing.
3. Your downside is theoretically unlimited, but it would not be unrealistic to lose more than the initial short.
4. This stock is thinly traded, which introduces a market liquidity question that could affect your ability to get out if you want to.

The claims might that MSPR is pursuing might be totally worthless. Or there might be some value….but nobody knows how much. The strong feeling is that, if the claims have any value at all, it’s nowhere near what was represented in the listing documents.

One significant pitfall with a thinly-traded stock: If your short gets out of the money (i.e., the share price actually rises), you could get caught in a short squeeze. That’s where you want out, but can’t find enough shares to buy to cover your short. So you’re paying margin calls, and are helpless to stop the music.

Shorts are a great tool, and contrary to what some people believe, actually help to stabilize the markets. But to make money with them, you not only have to be right on the general direction of the share price, you have to be exactly right on the timing or willing to make margin calls.

It’s hard enough when you do have reliable financial information. You cross the line from investing to gambling when you don’t have reliable information.
531CC0B6-33FB-48F8-B04D-86B572FF9235.png

No thinking on the football boards! You know the rules
 
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dWarriors88

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If you do that, just understand that you’re gambling.….which is fine, so long as you go in eyes-open.

The pre-opening price this morning (July 15) is $1.70.…down almost 83% from the price immediately pre-listing. So a few things to consider:
1. Your potential gain from a short is limited to the current price, which is already in the toilet.
2. What’s tanking the price is that investors don’t have a clue as to the true value of the claims MSPR is pursuing.
3. Your downside is theoretically unlimited, but it would not be unrealistic to lose more than the initial short.
4. This stock is thinly traded, which introduces a market liquidity question that could affect your ability to get out if you want to.

The claims might that MSPR is pursuing might be totally worthless. Or there might be some value….but nobody knows how much. The strong feeling is that, if the claims have any value at all, it’s nowhere near what was represented in the listing documents.

One significant pitfall with a thinly-traded stock: If your short gets out of the money (i.e., the share price actually rises), you could get caught in a short squeeze you can’t cover. That’s where you want out, but can’t find enough shares to buy to cover your short — that’s where the thinly traded part really hurts. So you’re paying margin calls, and are helpless to stop the music until you can accumulate enough shares to cover the short position.

Shorts are a great tool, and contrary to what some people believe, actually help to stabilize the markets. But to make money with them, you not only have to be right on the general direction of the share price, you have to be exactly right on the timing, or be willing to make margin calls.

It’s hard enough when you do have reliable financial information. You cross the line from investing to gambling when you don’t have reliable information.
so when can I sign up for one of your trading classes 😎😎
 
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4Q Basket Case

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Nov 8, 2004
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so when can I sign up for one of your trading classes 😎😎
Actually, unless you count regular contributions into 401ks and IRAs, I’ve never traded much. I’m retired now, so I don’t make those contributions anymore, and I trade even less than the small amount I did before.

BamaNation and I have very similar investing philosophies. They’re outlined in the Personal Finance sticky thread at the top of the Non-Sports, No Politics (NSNP) board.

You can read the details there, but the short version is:
- Investing is for the long term, defined as a business cycle or longer. Business cycles vary, but tend to be in the 6 - 9 year range.

- Long term investing success isn’t built on trading or timing markets…those techniques have more in common with gambling than they do investing. It’s built on a diversified portfolio.

- For most of us working schmos, a diversified portfolio is built on adding as much as you can as often as you can. As in: Every. Single. Stinkin’. Paycheck. No exceptions, no matter what the talking heads are screaming about on TV, or how burned out you are and the family ”needs“ the vacation.

- What actually constitutes “as much as you can” requires a heart-to-heart conversation with yourself, and if you’re married, your spouse. Being honest about what you want (a whole lot of toys, $300 bats for your Little Leaguer, a $1,000 prom dress for your daughter, $500 drivers for yourself, and vacations in Orlando for the family) vs. what you need (not that much) is essential. You’d be surprised how much investing you can bake into your lifestyle and not miss it a bit.

- The final basic is this: The above approach won’t hit any huge gains, and it requires discipline, especially in the early stages. You’re not going to get to brag at a cocktail party about the money you made on cannabis stocks or NFTs or cryptocurrency, or Grand Cru Burgundy, or whatever the investment darling du jour is. You also won’t have to choke down the Thanksgiving cornbread when your BIL asks if you got out of Bitcoin in time.

It will, however, make you financially independent over a 30 - 40 year investing career.

There are lots more details on the thread mentioned above.
 
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Guido

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Feb 24, 2017
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I'm beginning to wonder if new penny shine is beginning to wear off of Miami. Big time tackle alinen who was once considered a big lean to Miami verbals to BAMA. Now Malik bryant, big time linebacker out of Orlando, who has 5 CB's for Miami has announced that he is delaying his commitment, because he needs more time. He was expected to verbal today. Could be just a coincidence or maybe trouble is brewing. I think we will know soon.
 

lowend

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Trading Phil Knight for this Ruiz character was not a wise career move for Mario. I always liked him at FIU, Bama, and Oregon, and hoped he might be on a post-Saban short list, but there will be a lot of stink on him after this stop.
 

The Ols

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I'm beginning to wonder if new penny shine is beginning to wear off of Miami. Big time tackle alinen who was once considered a big lean to Miami verbals to BAMA. Now Malik bryant, big time linebacker out of Orlando, who has 5 CB's for Miami has announced that he is delaying his commitment, because he needs more time. He was expected to verbal today. Could be just a coincidence or maybe trouble is brewing. I think we will know soon.
The cat that's promising them all of the money is in line for a heap of trouble. No mo $$$...maybe?
 
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Guido

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The cat that's promising them all of the money is in line for a heap of trouble. No mo $$$...maybe?
[/Quote
You're right, fed trouble is coming maybe, believe me you don't want that. Hopefully Mario has not walked into a snake pit.
 

BirminghamBAMA

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I'm beginning to wonder if new penny shine is beginning to wear off of Miami. Big time tackle alinen who was once considered a big lean to Miami verbals to BAMA. Now Malik bryant, big time linebacker out of Orlando, who has 5 CB's for Miami has announced that he is delaying his commitment, because he needs more time. He was expected to verbal today. Could be just a coincidence or maybe trouble is brewing. I think we will know soon.
I wouldn't call Alinen a big lean to Miami. Bama lead for the majority of his recruitment, and people jumped the gun after his Miami official and ran with the hype. I think Malik might be trying to see if he can get a bigger offer if he delays.
 

Guido

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I wouldn't call Alinen a big lean to Miami. Bama lead for the majority of his recruitment, and people jumped the gun after his Miami official and ran with the hype. I think Malik might be trying to see if he can get a bigger offer if he delays.
Maybe, but never try to outplay a crook. I hope these kids aren't getting bit by a snake. Often painful, sometimes deadly. NIL, everybody wanted it, I never objected to it on its premise , but that has disappeared.
 

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