Not time to bottom feed yetBottom feeders have been getting killed every day. The markets are crap. This is not the time to worry about "missing the up move". People should be more concerned with not losing money.
CM could make another move down tomorrow because tomorrow is the last day of tax-loss selling. More important, many institutional investors, especially mutual funds, want to reduce or eliminate holdings in CM because their holdings are printed in year-end brochures. For sure, nobody wants to be seen holding much CM.
So bottom feeders may be in full force tomorrow. But they will soon be disappointed.
MBIA news may be enough to trigger CM to bite the bullet and take $5B write-down. that would require a $2B equity issue. I suspect this plan will be adopted in mid-January. This is great news for long-term shareholders, but it also means that such a large equity issue probably means the stock goes to $65.00 or even $60.00.
At that price I'll be in, but seems certain to get there given developments in the past 2 days.