I shorted 10,000 shares at $45 when the symbol was changed and the stock starting trading. I covered at $40. This morning I shorted 10,000 shares again. I expect this stock to be back down in the single digits by the end of this year. Great opportunity to make money short trading the stock over the next months. Please remember that it still has its same corrupt management and has no viable product or service to sell. Plus, the law suits against Idearc are lining up and it will cost the company millions to defend itself. Thus, like Idearc, this comopany will also go BK. Sell short; get rich!
If you want to keep your pretend fantasy of trading $400,000 stock positions alive at least you should learn something about the companies you pretend you are trading.
Yahoo has the news story about John Slater of Paulson & Co. joining the board. See January 25, 2010. Go to Supermedia's own investor site or the SEC's EDGAR web site to see it too.
SPMD could drop big this year. Maybe it rallies. But you know nothing about SPMD and you didn't short $400,000 of SPMD or any other stock.
SuperMedia Adds New Director to Board
John Slater Joins Board of Directors Pursuant to Amended and Restated Standstill Agreement with Paulson & Co. Inc
Press Release Source: SuperMedia Inc. On Monday January 25, 2010, 4:36 pm EST
DALLAS--(BUSINESS WIRE)--SuperMedia (NASDAQ:SPMD - News) (the “Company” or “SuperMedia”) today announced John Slater, a Vice President at investment firm Paulson & Co. Inc. (“Paulson”), has joined the Company’s Board of Directors, effective immediately. With this appointment, SuperMedia’s Board of Directors has increased from eight to nine members. Slater, like the other members of the Board, was appointed to a term that will expire at the annual meeting of stockholders to be held in 2011.
Slater’s appointment to the SuperMedia Board was made pursuant to the terms of an amended and restated Standstill Agreement between the Company and investment funds and accounts managed by Paulson. The amendment and restatement of the original Standstill Agreement and related changes to the Company’s bylaws facilitate the appointment of Slater to the Board by reducing the threshold at which Paulson has the right to appoint a nominee to the Board, as well as the thresholds at which the standstill and voting obligations of Paulson under the original agreement became effective.
“We are pleased to welcome John Slater to the new SuperMedia Board and look forward - in particular - to the insights and perspective he will share on behalf of Paulson, a highly regarded investment firm,” said Scott W. Klein, chief executive officer of SuperMedia Inc. “We appreciate Paulson’s interest in our company, which I believe is a strong testament to the importance of the print and online yellow pages business to small and medium businesses, as well as the potential to position the business particularly in the online segment to benefit from the evolution of the advertising market.”
Slater, who joined Paulson in January 2009, focuses on investments in the media, telecom and technology sectors. Previously he was a Vice President at Lehman Brothers and Barclays Capital. He holds an MBA from INSEAD, an MA and BA from the University of Cambridge.
The foregoing description of the amended and restated Standstill Agreement is qualified by reference to the full text of such agreement, which is attached to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on January 25, 2010. Interested persons should review that document in its entirety. It is available on the SEC’s web site at www.sec.gov or at http://ir.supermedia.com/sec.cfm.
How is your fantasy $350,000 or $400,000 short position?
What a fool.
SPMD is the worst run company in a crappy business. The stock could be heading lower but who knows, maybe it gets a pop. Maybe they merge with RHD or Yell PLC. I have no idea.
I do have ideas about idiots who claim to be short 10,000 shares of this illiquid crappy stock. There's no non-institutional borrow available in that size. Besides, to short $400,000 or more in a retail account, the investor would need $1.5 million or more in value in the account. But most people trying to short that amount would have $2 or $3 million. I am sure that there are lots of people with $1.5 million or more in a brokerage account posting here. Especially when they are as ignorant as the fool saying he shorted 10,000 shares.
Paulson filed a 13D and has an employee on the board of directors. He isn't short the stock. He backstopped the distribution of stock. He signed a standstill to limit his stock holdings to no greater than 45% (it didn't matter, since he only went from 13% to 17% due to backstopping).
Paulson has made a lot of money but he makes mistakes like everyone else. Buffett's been around longer and he's made more money but he's made plenty of lousy investments along the way too (anyone remember Berkshire's investmetn in US Air?).
When someone says you "It is far too complex to explain the underlying trading models used by hedge funds" that guy might as well be a drunk fool calling a talk radio show. He's just throwing together gobbledygook. "Trading models". What a joke. Paulson owns SPMD stock. That's all. Nothing special. He had to make disclosures to the bankruptcy court and the SEC. These are publicly available. Having a board representative he now has additional legal responsibilities (i.e. his employee has to act in the best interest of all SPMD shareholders, so if Paulson's guy resigns, that means he probably has a strong disagreement with something the board is doing and could either sell his stock and get out of SPMD or launch a fight to take over the company).
There's no magic to it. There's lots of reasons not to own SPMD but Paulson shorting the stock isn't one of them. Paulson wanting the stock to go down isn't one either (since he just put a guy on the board, and since he bought 600,000 shares in his backstopper role -- he bought those shares a lot cheaper than the current price, around $17.50 each). That is public record, since Paulson backstopped at a market value of $260 million market capitalization for SPMD.
Since Paulson owns a bunch of the bank debt and the stock, and Paulson has obligations to maximize the value of his own investors, obviously he wants SPMD to succeed and the stock to go higher. But that doesn't mean he'll be right. Paulson could be very wrong. He has hundreds of different investments and SPMD is just one of many. Most of his investments do well for him but he has plenty that lose money just like any other investor.
InvestmentGuru, your claim that Paulson wants this stock to go down a lot makes no sense whatsoever.
Paulson owned 17% of SPMD when the stock began trading back on January 6th.
This 17% stake equals approximately 2.5 million shares.
Since the stock has began trading, a TOTAL of 1.6 million shares have been traded.
Even if Paulson was involved in EVERY SINGLE TRADE that has taken place (which isn't possible if your claim of shorting the stock is true) they would still be net long almost 1 million shares of stock.
Since you claim to know so much about investing, please explain to us common folk why Paulson wants the stock to go down a lot?
Andy -- what you don't understand is that Paulson runs a "hedge fund" and is expert at hedging his stock with short sales against that stock. It is far too complex to explain the underlying trading models used by hedge funds. But trust me when I tell you, Paulson wants this stock to go down alot.
Paulson owns about 2.5 million shares of SPMD as per their disclosure of ownership.
Since SPMD began trading, the cumulative total of all shares traded has been 1.6 million.
Therefore, I will wager as much as you would like that Paulson is NOT selling SPMD short at the present time.
Does anyone on this message board have any clue at all?
Be careful guru. With a little luck SPMD could earn $20 a share in 2010.
Shorting a stock with a pe ratio of 2,and trying to fight Paulsen is pretty risky.
Make sure to use tight stop losses on your short sales.