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?