What A Difference A Day Makes - II

Yesterday LQDT was flying high - nothing between it and 500 points but fresh air and sunshine - today, to this moment (1:30 P.M.) it has already shed 389 cents and that is, roughly speaking, about the same 90 million bucks in capitalization it made last week on its just OK earnings. What goes around comes around.

There really wasn't any need for the secondary offering except the greed of the participants and consequently a lot of 401K's (LQDT's labor force) got raped and it is all perfectly legal.

How about that - you put your money into your companies stock because your company is a strong, solid place and you know they are doing good things, and you are very proud to be part of that gang - you go to bed on Monday night with a solid retirement fund and by the time you get to work on Tuesday morning your company has killed 17% of it - not theirs - just yours - they're selling 5 million more shares for their retirement fund.

Gotta love it.

Secondary Offerings

Secondary offerings have cost me more money than any other useless management scam ever perpetrated on the unsuspecting trader. I'd rather they backdated options - at least that doesn't have the effect of "company is going to sell 100K shares and "selected shareholders" are going to be allowed to sell 5 million". Wonder who they are? As I said a backdated options scam is less painful than this crap.

OK - I lost 75 cents on the bet today - that gives me a two day net of 0 including commissions - I should consider myself lucky I suppose - I actually had a profit in my account for 24 hours and then I got greedy. The rule is simple - don't try to drink from the well twice in one day - you will always gag on the second drink - always.

It's only good to be management folks - no one else stands a chance.