PRSC closed at 8.47 today
Why is this Breaking News? and what does it have to do with Citibank?
On 10/30/08 I bought 19,000 shares at .85, it was 20% shorted at the time. Everybody talked about the short squeeze that was going to happen any and everyday. It went up and we would cheer, it went down and we would hold our heads. When we did the numbers they would come out that there was 139% of the float out there, so we knew that we didn't just have 20% shorted but a ton of naked shorts too.
PRSC had lost over 15 dollars a share 3rd qtr 2008, not .11 cents.
I believed in the stock because I did my homework and knew that it would go up, even if only by short covering. It didn't go up over night! We would get up to over 3.00 and go back down to 1.50. It was filled with market manipulation because the share just weren't there at the price that the shorts needed to cover at. After going up over 3.00 it was sold off to 1.20 right before the end of the year. At first I held my head and thought why didn't I just sell!?!?! Then my head cleared and I thought I know this stock, I believe in this stock and I know it will go up! I can't let greed or fear control my trades or I will lose.
Today was one of those days that I have to keep a clear head and look at the facts. This stock will go up. I have bought every watch screen that I have found and I keep them all open. This stock may have had some covering but mark my words it hasn't been even 20% of the 1.2 billion short. You will see when the report comes out.
This is just manipulation to keep the stock in a range. The same guys that have shorted the stock sold options. They can't afford for this to go over 4.00 today, they have already lost too much money.
There are so many kinks in there portfolio when it comes to Citi right now they are in panic mode doing whatever they can to get out alive. They have nothing more to lose, but they can't do go on forever. They will have to cover, it may not be all at once and if there is a short squeeze in one day it will be a day that you least expect it.
More than likely it won't be them that covers their shorts but the brokers that go out on the market and buy them back and charge the shorters. It wont be based on the news or the market or on a day that you expect. I noticed with PRSC that on the first monday of each month for early 2009 we had run ups and shares bought every 1 min almost on the second in the same size lots. Thats when we started seeing the short position shrink, so I thought it might have been the broker buying the shares back.
I do think that it could get interesting with Citi before the meeting because the large firms that loan out the shares to be shorted can't use the share to vote unless it is returned. I think that we could have a run up the day before the meeting and the shorts and hedge funds may not have a choice because it may be the broker buying what it can back and charging them the market price. They did think that they would have the shares back by today because of the preferred conversion and that didn't work out as planned.
It doesn't matter when to me because I know that they will be forced to cover and the price will rise when they do.
The only time that a short pushes a stock down to nothing is if they think that it could go BK. When it went down to under a dollar they still believed that it could go BK. Now we know that it wont, it can't, it is "too big to fail".
Please look up PRSC and look at the history. If it can recover Citi can soar.
DNDN soared from $6 to $21 in one day and the price held. Can you imagine waking up one morning and losing $15 a share especially if you have more than just a few of them? Is the risk worth it? I don't think so.
TA and news definitely favors holding long. Besides that huge short interest is just itching to be taken out...it's way too easy to suprise the shorts by manipulating this over $5. Someone will make a fortune doing this. It always happens.
Look at PRSC's price today... Citi has the backing of the government what do you think can happen with that? No Citi isn't PRSC - It is a much bigger company with less debt, yes less debt and in a much better position than PRSC was when it was shorted to nothing
Enjoyed reading your post but did PRSC go through the conversion/dilution process prior to recovering to what its now. I was hoping atleast the stock will close at $4 and in extended trading after option expiry between $4.45+ range. Did it? Pandit ran a Hedge Fund Company and knows his stuff with this preferred holdings which are making money at the expense of common stockholder. I see the fate of Citi like GM and then who knows. i have also seen this with Amazon, Ebay and look where they are now. Cash is the king for now
<<Pandit ran a Hedge Fund Company and knows his stuff>>
Read this and come back:
Complete BS! I'm long on Citi, but your nice little story sounds like tricky propaganda. Call me paranoid if you want, but you look like a hidden shorty trying to make us soft so you can f$$k us all real hard next week. IGNORED!
'do think that it could get interesting with Citi before the meeting because the large firms that loan out the shares to be shorted'
Can you please tell what meeting and when that meeting is going to take place?
great post and totally right. i have been in since $1.60 and it has gone up and pulled back many times. but #1. this used to be a $30 stock. #2 the goverment wont let it fail.#3 look at the last month, their were days it went down and i wanted out but then the next day or so it comes back, look at were it is today! has it gone back to $1.00 NO. today was just week holders who didnt have the balls to stay in because it didnt POP like every one was saying, so what wait till next week . we will finish at over $4. it is being manipulated but they cant do it forever. the ones that stay will get a big pay day. i am in may calls at $3, but most my postion is june $4,5 and sept $6 i am not selling because i know ill hit the money , just sit back and relax, or sell andkick your self in the ass when it runs and you werent in. good luck