Don't be too smug about the short term price of this stock. Long term, I believe it will continue to fall, but short term I have seen the stock rally 80% within a couple of days.
If I were as cock sure as you are about the stock falling without respite, I might invest more than 1/2 of the amount I would put up for a long play, but given MBIA's history of sudden violent rallies, I would never short this stock on margin, and would keep at least 1/2 of my available cash for the short in reserve.
I most circumstances I would say you were right.
But with the sector downgrade yesterday by moodys and the S&P downgrade on ABK today. Who the hell wants to be in this right now.
Especially when there are so many good buys out there.
We will see this break $4 today.
This will not be back to $10 in a very very long time from now.
The business is garbage. It is honestly crap. It sells magical fairy dust. If you want to buy it thats fine with me but I know i wouldnt want to pay anything for it.
Their product will become obsolete in todays environment. They havent sold a dime of it in the last quarter.
I am short since $10.30
I have more confidence in this stock falling lower the it going back up to $10.30 in the short term.
That is my only position. Its a garbage company that has a worthless product in todays marketplace.