October 12, 2008

CLOSELY WATCH TO BUY TO COVER RBS, BCS, IBN, UBS

We have been short banks.

UK government is investing $10B in RBS and $3B in BCS. We do not know how the stock prices will react. Should the prices begin to rally, we recommend covering in London. If the prices fall precipitously, again the right action will be buy to cover. If the prices open unchanged, we recommend buying to cover half and lose stop on the rest.

Similar recommendations apply to UBS and IBN. We have been using IBN as a proxy for our recommendation to short Indian and Chinese Banks. We recommend following the aforementioned advice related to these positions and buying to cover in their home countries at the open

Closing prices: IBN $13.85, RBS $1.45, BCS $15.20 and UBS $15.30 in New York

Same advice applies to other European banks and insurance companies we have been short.… Please click here or the title below to read more.

October 12, 2008

CONSIDER BUYING TO COVER AMLN, VMW,AKAM AND RHHBY

The market crash has given us a great opportunity to take profits in our short positions. As a sharp bear market rally can take place any moment, we recommend covering AKAM around $13, VMW around $21, AMLN around $12 and RHHBY around $65. Should a sharp rally ensue and you have still not covered , you may consider covering at the market. In a rally , it will be easy to lose our large gains.

… Please click here or the title below to read more.

October 12, 2008