RE:someone walk me through the short box trade
rad10 wrote: I am just a blue collar doc - grinding out a living and investing to retire a few years earlier - got caught holding the bag on this garbage. Walk me through this box trade. It seems like we are caught in the middle of a peepee contest with the big boys...........
1 - the secured first lien hasn't budged since early november (I have a few thousand face value in this at 86 and change)
2 - impressive rally on the common over 2 trading days (my cost basis is nearly 20 bucks - ouch)
3 - non secured debt is dropping. (no exposure)
How does squeezing the non secured debt benefit the stock? The non secured is higher up the capital structure. Is it walked down in order to load up, or for it to be bought up and retired by the company - if so how does it get walked down?
I don't have all fintwit on twitter but that would be a better place than here to get some answers on your question. Most of the knowledgeable guys seem to have in excess of 5,000 followers. I picked up these two tweets yesterday and not fortunate enough to have a Bloomberg Terminal like the big guys on twitter that show the bond action - but one thing for certain is there doesn't seem to be a bull thesis on the equity and it seems that its just a matter of time for restructuring. (And according to Maris this morning - the same for Valeant). You may be more successful getting an answer on twitter. I just joined twitter a couple of weeks ago so quite tweeter novice and don't have followers so I can't direct message these people.