I got in to BBX for one main reason and that was to take advantage when the HUGE short squeeze happens. I played the same hand with Ambac insurer 4 years ago when the squeeze took ABK from 0.68 to 6.10 in one week. ABK had millions of shorted shares and yes Ilyssa they MUST buy them back. This will also happen to BBX and based on the FACT that there are 5 Million shares shorted, we should see at least a squeeze up to $ 3.50 per share and when that happens I will cash in and smile all the way to the bank.... Ilyssa that day is a coming.... count on it !!
I remember that Ambac squeeze as I was trading the debt issues and made a fortune. I told my daughter that she got a scholarship from Ambac. The possible catalysts that would cause a BBX short squeeze are:
1. Interest From a Buyer Like PNC It happened before and could happen again.
2. Surprise profit report Bank GAAP earnings can be volatile both up and down. BBX has alot of loan loss reserves and if at some point loans start to improve they will be able to reverse some of those reserves and post a "surprise" profit.
Not saying when either of these things will happen, but I have no doubt that either COULD happen with a little luck in the next year. Either would run BBX up to $2 in a hurry if it did happen. I'll stick to playing BBXT and BFCF which would also benefit if we get a BBX short squeeze at some point.
Meanwhile, nice 15% rally for the BBXT debt issues over the last few days since I jumped back in on the drop near 10.