Short of BSC

Ok, so this has been the most sporadic of any stock over the past week and a half. Look at why that is:

1. They pretty much declare to the world they are about to crash into the ground (which sends the stock through the floor).

2. They get bailed out with help from another firm and the Fed (stock rebounds a good bit).

3. Shareholders demand a better deal (stock goes up again).


In my opinion there is no reason to believe that just because JP Morgan bought them out (and eventually even sweetened the deal) that their troubles are over. We have yet to see all the damage inside the company and I don't think that risk is yet built into the price. Recall that the initial news of their downfall was blamed on "market rumors". Well, I think it had a lot more to do with risky investments not yet exposed and eventual write downs then it did with some loudmouth in a Yahoo Finance chat room. I expect continuing bad news from Bear and think that these last two upswings are hopeful and unrealistic.

Short it.