I have a little story to tell you which may shut you up for good. A close business associate of mine shorted 5,000 shares of Honeywell (HON) in August. He had heard rumors from his broker that HON would miss 3rd quarter estimates and the stock would fall to the twenties. He was very cocky when the stock fell to $33 and looked like it was breaking down. He was up $7500.00, but he refused to cover the short. 2 weeks ago a little company called GENERAL ELECTRIC made an after hours bid for HON and the stock is now $54.00 and my friend had to get an $80,000.00 home equity loan to cover his HUGE margin call. He ended up getting "bought in" by his broker at $52.50 because he could not get the money in time to meet the margin call. In my opinion, anyone short GMH right now is an IGNORANT FOOL! A bid for GMH in the $50's is very REALISTIC at ANY TIME. I hope you have the staying power to cover a margin call, should that happen. My friend didn't and it wiped him out, period!
First off I've made a 55% gain since January 3rd of this year when it's actually down 11% if I wouldn't of bought and sold. That's a 66% difference. Even if I should happen to miss a day I seriously doubt, No I guarantee GMH would never go up that much in one day. However I am aware of the risks involved in buying and selling, but I got to tell you since the market has changed dramatically with Day trading it is a different picture. I feel in a much safer place knowing the ups and downs of this crazy market. Yes in your opinion I might be an ignorant fool but my philosophy has made me some goo money this year. I am aware when earnings are coming out, I am aware of potential sales and mergers etc. I stay informed about this stuff. From what I've learned about GMH and a lot of brokers have reflected the same theory is that until the GM Board decided to sell/spin DTV as a separate entity this stock is a floating duck. Now a friendly piece of advice to you "GMH is going nowhere fast until DTV is not tied to GM" That my friend is reality. I could take being called an ignorant fool because I have proven you people wrong all year.
Believe me I'll be there when GM is serious about DTV, I'll be making the money with you.
I'll be in touch. The fool with a 55% gain in an -11% year. Who's the fool?
The GM board will "approve" the ultimate decision on what will be done with Hughes, but the one who is really pulling the strings on GMH is Harry Pearce (Vice Chairman of GM). Harry is a very SHREWD businessman and also the chief legal council(lawyer by background). The brokers have no idea what Harry is working on or WHEN he will announce a deal that benefits both classes of shareholders. Brokers only speculate and spread their rumors. Shareholders could not be in better hands than those of Harry Pearce. He will do the right thing and he will do it only when he is ready to get the best "deal" that can possibly be done. The brokers will get no advance warning, the deal will come when Harry presents it to the board and they rubber stamp it. It is not wise to be short this stock, because a deal could come at ANY time. My experience with Harry Pearce is that it will be kept totally quiet until he is ready to make it public, no rumors, no leaks, no broker advance warning. Harry doesn't work that way. The deal will come in good time and Harry Pearce will make sure that it is done fairly to the benefit of ALL shareholders. I trust him and I have complete confidence in him, the rest is HAVING PATIENCE to HOLD and wait for it to happen.
I was about ready to type, duh, "You are." But then I realized you are right. We are all fools for allowing ourselves to get caught up in your nonsense and name-calling. And then we waste a lot of our time trying to justify, TO YOU, an imbecile, why we might choose to invest differently. You are not an ignorant fool because you've been successful. You are an ignorant fool because you try so earnestly (?) to change the very investment behavior (us) that gives you the opportunity you say you enjoy. Why not leave us in ignorant bliss so that we may provide you with many more handsome returns? Why try to educate those whom you can't resist thumbing your nose at? That, my friend, is ignorant. Right up there with:
"I have a broker who..." (He has you) "Insider trading always has and always well [SIC] go on, we would see some pattern developing and it hasn't happened." Patterns draw suckers in gradually and to ever increasing degrees as they mistake repetition for reality. It makes suckers invest only at the "bottom" and sell only at the "top." Then, when fully invested, the pattern changes and a new interpretation emerges. Too late. You've been lucky. You've purportly made good money - but its not a lot of money; really you've made only chump change this year. You are not the only person on this board who has ridden this wave of good fortune. You're just the only one who feels you has to let people know that you (he/she) really do have an appendage worth swinging. Many happy returns.