It turns out to be way overblown and there is just incredible hype everywhere about lockup is expiring, lockup is expiring. Look, the lockups always have ways out and around it, and I think we've already seen that in the 30% drop.
No they bought Puts back in November that expire at lockup. That is how the game is played. Then they unwind those positions on the "news" of lockup where are the retail investors think the stock is going to tank, and then hold the stock.
Seems to me you only hedge against oil to the point where it creates losses. I would think at this point the hedges are very very very cheap way out of the money call options on futures contracts for very high strike prices on oil in the 80's or 90's.
Seems to me you only hedge at an oil point where you would start to lose money. This is all hindsight pricing IMO and is already priced in. What is not priced in, is much of the near term and future drop in oil prices that really requires NO hedging at all, or if it is done, it's for years in advance, really cheap and at a really high options strike price.
I agree. Cancel the flight and reimburse the two passengers with RT Conus tickets.
All the airlines have been sliding. Personally, people are general market nervous, with financial getting hit hard because they might own a whole bunch of bad Shale Energy Debt. That prompts people to panic and sell large baskets of stocks, regardless of what's really in the basket. There is at least the catalyst of earnings next Monday and smart money, not dumb ETF money knows that DAL will have a very nice upside surprise and next quarter will be even better because of the HUGE drop in fuel costs, which lag and won't be fully visible for this report.
Unless you know the schedule that is pure speculation. Flights get cancelled all the time and they sit there for a day or longer depending on weather.
Where is the future revenue coming from? Who wants to use their services when they result in Billion Dollar fines to banks?
Classic Dead Cat Bounce. Measure with a Fibonacci ruler from the close before the big spikedown to the bottom at $16. The bounce was exactly .382 of that distance. Ended up very close to where it opened, that is a Bearish Shooting Star. Who is going to believe anything they say in a conference call? Only fools. All the revenue is gone from OCN, and nobody wants to do business with them that cost 10x the cost of their services when the billion dollar fines come rolling in for all the shenanigans OCN has done with their mortgages. Wells Fargo refused to hire them ever again. Wells Fargo and all other banks have had it with all the billion dollar fines such companies generate for them. OCN I guess puts that in their proposals, hey we'll generate all the billion dollar fines you need.
Sentiment: Strong Sell
I don't think it is over because what companies will want to do business with them? Wells Fargo wont' work with them. Banks have had enough of these shady shoddy companies like OCN.