I just shorted PRTY at 161...

Baulucky · #1 07-20-2005, 01:32 PM

I think party has seen the best of times already.

If it goes to 175, I'll take my loss. I hope I can see it below 100 this year...

Nigel · #2 07-20-2005, 01:40 PM

Who are you trading through? I've never tried trading any other markets, so I am unfamiliar with how you access them.

Thanks,

Nigel

Baulucky · #3 07-20-2005, 01:43 PM

I used interactivebrokers.com

Derek in NYC · #4 07-20-2005, 01:45 PM

Interesting that you can even trade Party. I was under the impression that since Party was an enterprise engaged in (arguably) illegal activity under US law, it was illegal for American citizens to invest in the security. (Kind of like the way it would be illegal for an American citizen to buy the publicly traded stock of a Thai brothel specializing in child prostitution, if such an entity had a foreign listing.) I'm surprised you found a B/D willing to execute a trade for an American citizen.

goodguy_1 · #5 07-20-2005, 01:47 PM

you will definitely get stopped out at 175 if you have anything but a daytraders,even swing trading methodology..the stock has too much momentum right now..just made new highs yesterday or early today. I think your timing is ok but you may have to see it run up 30-50 bucks. Dont use stops. By the way how did you get stock to short must US IPO's are very difficult to short within the first 3 months or so? I dont know UK securities rules.

Must likely you will get run over and lose money. If you shorted 100-500 shares you could get smoked short-term but I think long term if you can take the heat this is a level that is good to get short Party. Cancel your stops with your broker or cut your position in half and you will have a better chance at making a good trade.

Must people that trade hot stocks that are the flavor of the month or just to make a point get smoked..you need a long term time horizon and a lot of experience to make money on the short side..if you are daytrading this overpumped piece of crap you can easily make 10-20 points if your timing is good but with tight stops doubtful.
This stock will be cut in half within the next 2 years perhaps down 75% from current levels imo.

So your instincts are mostly right but you have a very high probabilty of losing money.

Nigel · #6 07-20-2005, 01:51 PM

Not using stops on a short sounds dangerous.

Baulucky · #7 07-20-2005, 01:51 PM

I am not US citizen, but imo there isn't any problem for anybody doing any investment in a legal stock exchange. If you argument had any legs than any investors in tobacco companies would, arguably, also be incurring in a crime?.

sthief09 · #8 07-20-2005, 01:53 PM

weren't some venture capitalists or i-bankers or something in the US arrested for helping to finance Party's IPO? I'm pretty sure US citizens can't invest in PP

moondogg · #9 07-20-2005, 01:53 PM

Tobacco is not illegal in the US.

Baulucky · #10 07-20-2005, 01:54 PM

Thanks for your opinion. I didn't put a stop, but if it trades 175 I'll buy it back.

I just put the offer in and it went thru. It's the broker's problem to get the shares. I guess they have many customers long PRTY... so it shouldn't be a problem for Interactive.