shorters going to get into this tomorrow?, page-7

Marcus Padley is warning that BNB could be setting-up for liquidation - to quote:

"You are being warned

I mentioned Babcock & Brown yesterday….

I notice an article in the Australian Today (page 21) quoting a fund manager saying “Babcock’s already gone. Its in liquidation mode”. I’m glad someone else said it.

I was head of sales at Barton Capital when OneTel went bust. It happened all of a sudden. Trading halt…never came back on. The price action in Babcock & Brown is suggestive of something similar. Down another 24% today.

When OneTel went bust people were trading (daytrading) it for its fantastic volatility and liquidity and the fact that it had “fallen so far”. There were millions of shares and thousands of trades going through the screen on its very last day. This is a warning that if you do this in Babcock & Brown you do so at your peril.

When OneTel went into its trading halt many dealers were left with the prospect of getting settlement on purchases of OneTel by a host of trading heroes who habitually didn’t settle trades and assumed they would be able to sell. Suddenly they couldn’t sell and they had to settle and the brokers wore a lot of settlement issues of idiot clients (using idiot brokers).

I haven’t done detailed analysis of Babcock & Brown...who can? I can’t tell you what’s going to happen. But all the signs are bad and the fact that they are off loading the management rights of some of their listed entities suggests they are preparing for the worst and trying to protect the other entities should the worst happen.

Bottom line….this is not a stock to do your day trading in because you may never get out….and you also have to be careful in the other listed entities should the head stock go. They could well end up in extended trading halts.

Buyer beware. Traders avoid. Brokers take orders at your own risk.

Wouldn’t exactly be good news for the rest of the banks or the market either."



list of financial stocks still protected from shorting below