Dash for Trash, Trashed!
Ok, I admit that I’m guilty of buying a few of the stocks that have been recently branded by the media as “Dash for Trash”. In particular, I’m referring to MBI, ABK, FRE, FNM. I got into these stocks all fairly early and today, I dumped my last shares of each of these stocks. I figured that there was no real justification to why their stock prices are going through the roof. I think they’re just riding on the coattails of AIG which has exploded as of late.
In any case, I don’t suggest jumping into any of these “dash for trash” stocks at their current prices. The risk is too great. I got into these dash for trash stocks much, much earlier and have been selling on the way up. It’s just too crazy for me. I can’t imagine myself wanting to invest in these stocks at their current prices. I think the recent increase in price is attributed to speculation, short covering (most of these stocks have massive short positions), and all the news suggesting an improving economy. However, fundamentally, these stocks are no different than when they were trading at far lower prices just last week.
Anyways, it was a great run. I made terrific gains on most of these dash-for-trash stocks but I’m going to take that money and put them into less risky investments now. In particular, I have had my eyes on Regions Financial (NYSE: RF) for a while and just put some money into that today around $6.04.
Happy Friday Trading Everyone!
