Stocks: Faz

[GBurr]

Should I get out of FAZ or should I hang on to it for now. I bought at $13.57. I'm not sure if I should get out and try to make the lose up some other way or just ride it out and hope for an upswing.

 

[tmosley]

It's up to you. I sold mine. I'll probably buy back in after all these fraudulent profit reports come in, unless they start coming in as being really bad, then I might jump back in immediately.

 

[dannno]

It's a ticking time bomb. I can't say when it will go off, but I have some just in case.

Just make sure you're hedged with some gold/silver (physical/mining stocks)

But looking at a 6 mo. graph it looks like it's at a good price.

 

[GBurr]

Well luckily I'm not really playing the market at this point. I have the FAZ in a virtual stock exchange game. I'm forced to be part of this crappy game because of my Accounting class. The teacher won't even let us buy anything under $5 a share. What I have to lose is my pride and reputation. I watched myself drop from the top of our leader board to the bottom.

 

[dannno]

Well the next few days should be interesting.

When is your game over?

 

[GBurr]

I've still got a couple of months. As soon as I'm able to break even or gain I will sell it.

 

[dannno]

Hmm, I have a sell order in at 70

 

[GBurr]

I thought I was buying in at a low and now it has lost like 30%.

 

[clowns789]

I also bought it in my Economics class. I lost a whole lot on it. At least I can laugh at people who bought it at $55.

I hope it goes back up. There's just no predicting it anymore though.

 

[ILUVRP]

Don't fight the FED.

Buy GOLD & SILVER

 

[stag15]

Well luckily I'm not really playing the market at this point. I have the FAZ in a virtual stock exchange game. I'm forced to be part of this crappy game because of my Accounting class. The teacher won't even let us buy anything under $5 a share. What I have to lose is my pride and reputation. I watched myself drop from the top of our leader board to the bottom.

I shorted in GM at 2.33 in a virtual stock game, I want to cover at .30, but for some reason people are still buying the stock.

 

[shaunish]

sell it and stay out!!

FAS/FAZ should only be traded with a very tight SL, and not held overnight (unless its part of your strategy..... or you are an expert).

They are very tempting, but you get on the wrong side of these things and you are screwed.

I hear that all the banks wiill post 'higher than expected' earnings, I can see FAS going to 20+ and FAZ going to 1-2 as the market recovers.

 

[GBurr]

sell it and stay out!!

FAS/FAZ should only be traded with a very tight SL, and not held overnight (unless its part of your strategy..... or you are an expert).

They are very tempting, but you get on the wrong side of these things and you are screwed.

I hear that all the banks wiill post 'higher than expected' earnings, I can see FAS going to 20+ and FAZ going to 1-2 as the market recovers.

You mean 1-2 dollars.

 

[DFF]

Should I get out of FAZ or should I hang on to it for now. I bought at $13.57. I'm not sure if I should get out and try to make the lose up some other way or just ride it out and hope for an upswing.

I bought FAZ @ 19:97 and following the alteration of the mark-to-market accounting rule to mark-to-whatever-you-want I was FORCED to sell. Normally, I'd buy FAZ on a short term basis, but, I held it under the logical assumption the banks would all post horrific 1st quarter numbers and my investment would double or triple. Then I got ambushed by Uncle Goldman Sachs.

 

[sdczen]

I wouldn't touch a bank stock or ETF now that they've changed the MTM rule. I would cut my losses and put your money into something that has more of a stable ground to trade from.

I will say that the banks will eventually crater again, just not when they can utilize fantasy accounting.

 

[EddieG]

Does anyone have thoughts on the counterparty risk for ETFs like FAZ? That is my main concern: when you hit the jackpot, will it go under because the party that needs to pay up will be insolvent?

 

[DFF]

Does anyone have thoughts on the counterparty risk for ETFs like FAZ? That is my main concern: when you hit the jackpot, will it go under because the party that needs to pay up will be insolvent?

This is a damn good question. I've wondered this myself.

 

[tmosley]

Changing the accounting rules doesn't mean that they can postpone their bankruptcy forever, it just means that no-one will be able to tell when it is coming. The employees will just find that their paychecks have bounced one day, and that will be that.

 

[slacker921]

remember.. after TARP everyone said that the banks were untouchable because they had helicopter Ben tossing whatever amount of money they needed at them... their stocks went down.

They're basically insolvent and everyone knows it. The only way they have their doors open is because the government has dumped insane amounts of our tax dollars at them. (edited to add... .and the rules were changed to allow them to cook their books). Many things can break the illusion that all is well:
- With the government funds comes government involvement.
- The people are beginning to be fed up with the robbery. I pay for almost everything with cash.. as do my friends. We used to charge almost everything. That's less income for the banks.
- There is far less "business" taking place. Fewer transactions means less income for the banks.

 

[brandon]

Do not ever play FAZ...ever.

If you want to gamble go to Atlantic City and play craps, at least you get free drinks and can look at sexy women. Serious.