So it is this-- hedge fund selling-- that accounts for the selling by Merrill, SoundView, and Unterberg of SIRI in the past seven days or so-- informed opinion indicates. Readers of this post can check for themselves, as is my constant invitation to readers to always do on anything i write.One wonders why the stock of the company, SIRI. was ever bought by these large hedge funds if just prior to a launch institutional shareholders were going to sell their shares. Sort of reinforces my opinion that financial institutions in general manifest a level of knowledge approximating that of a feldspar rock.If you bought the shares, you should have hedged yourself with puts, instead of being forced to get a steep tax penalty on a short term capital gain.I have often wondered why individuals do not their own research understake instead of giving their money to "money managers". This latest example-- selling shares of a satellite service provider before its maiden launch--makes me wonder again why individuals part with their substance and let others risk it for them.Not this individual-- I'll manage my finances just fine, thank you.
I don't understand, Phronimos. Current selling could simply be related to hedging, and as I recall you utilize that tactic, yourself.
Two large hedge funds were selling SIRI outright-- not hedging their positions-- before the launch. Which is why I asked why they bought the shares in the first place-- did they not know a launch for this company was involved?Their sales were sales of "a long position".In this recent selling, I am pleased to say, I have increased my position in the company. With the new stock I bought I have initiated a position in the December 35 put. However, i think the price I paid for the put may have proven to be a phenomenal waste of money-- not a waste of a phenomenal amount of money, but a phenomenal waste of money.Glad to see ILS told me correctly about the June 30 launch-- I posted the information here the other day. Yahoo Postings about a July 20th launch were nerve wracking.
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