The Buzzards Lair

Welcome to the buzzards lair. A fine spot for connoisseurs and purveyors of crappy companies. Here we pick the bones of the idiot bulls and bears in the stock market.

Wednesday, June 28, 2006

Tuesday Morning update...

A couple news players presented opportunities on Monday for the Buzzard. First was GM. This old friend announced to the world exactly how well their business was going this summer by giving all car buyers 6 months no interest on all purchases. The buzzard shorted 2,000 shares at $26.94. This should be good for a multi-point selloff. For the buzzard, this is just a trade, not the typical crappy companies we like to hammer and ride down.

Also on Monday VRSN announced that the U.S. attorney general handed them a subpoena that looks into backdating of options. More pigs at the trough. The buzzard took this opportunity to sell short 2,000 shares at a price of $21.58. Should be good for a decent selloff the next few days.

Friday, June 23, 2006

Friday morning update...

After hours yesterday an old friend NBIX laid this egg...

Pfizer dropped partner Neurocrine Biosciences and its insomnia treatment, Indiplon. Analysts had already said such a move should be taken to mean that a critical form of the sleep drug would never reach the market.

NBIX traded down to the low $10's on this new. This is huge news for NBIX. There will be a string of downgrades and the very viability of NBIX now comes into question. There is also no less than 35 mm shares owned by institutions that will be dumped, possibly as early as this Friday or next week. There isn't an institution in the world that would want this stock on its second quarter statements.

The buzzard took this opportunity to short 2,500 shares of NBIX at an average of $10.25

Thursday, June 22, 2006

Thursday afternoon update.

The buzzard has been busy this week, preparring to remove myself from the ranks of the employed, working for the man minions, to one of self employment. Trading is now the buzzards sole means. Onto the trading...

I said goodbye to some dear friends today. I covered my 3,000 shares HRLY today at $10.01 for a net gain of $15,870. Sad to say goodbye to this scam, and what a fine scam HRLY way. Government fraud, indictments, horrible earnings... You name it HRLY faced it this last few weeks. A complete and utter victory for anyone picking the bones of the HRLY longs.

Next inline for covering today was IVAN. I covered my 8,000 shares at $2.41 from $2.75. Net gain for the IVAN trade was $2,720. Another fine carcass the buzzard found. IVAN, while not a big percentage gain was nice overall due to the fact that we were able to find shares and take a decent size position.

My good friend DXPE (1,500 shares) was next in line to be covered. I had been short DXPE for about 10 days at a price of $39.66. I sold this one the day I left for Anaheim and what a beauty it turned out to be. Almost straight down from my sell. During the time I held DXPE short the longs got a special trashing from IBD, having DXPE removed from their top 100 list where it had been #1. I covered DXPE today at $30.99 for a net gain of $13,005. Lately these bloated runners have been much too easy.

Now for the ugly. I had been short 3,000 shares HSR going into Wednesday. I covered 2,000 shares yesterday when the stock bounced off $12.00. Unfortunately I didn't cover until $14.25. I covered my final 1,000 shares today at $15.10. Total loss for the HSR short is $3,610. Thankfully, not all is lost. The buzzard quickly realized his error and declared the shorts roadkill on HSR, going long 2,000 shares today at $15.60. I fully expect HSR to squeeze into Friday and Monday on the potential of being added to the IDB Top 100 list. HSR surpassed the minimum share price requirement of $15 on this run, and being added to the list should really fuel a breakout. Time will tell.

PFACP showed up yesterday on the Buzzards radar. I will have some more discussion on this one later. Currently I am short 9,000 shares at an average price of $8.45.

Monday, June 19, 2006

Monday June 19th Update.

The Buzzard was out of town all of last week, with wonderful results. Prior to leaving last Monday the buzzard sold a small amount of DXPE, 1,500 shares ( at 39.66) and HSR, 3,000 shares (at 13.33). Needless to say, being short HSR, DXPE, ESCL, HRLY, IVAN and RGUS left the buzzard much fatter by weeks end.

HRLY is one I have been short 3,000 shares since 15.30. It's a huge POS government contractor that recently had itself and its CEO indicited on fraud charges. Last week there was a suspension of several of their plants, and they also reported earnings.... which were hugly disappointing. Nonetheless, by the end of the week the buzzard was sitting pretty.

After returning Thursday evening, the buzzard was back to trading on Friday. Just in time to get in on the NBIX debacle. The buzzard shorted 3,000 shares at 15.55 and another 3,000 shares at 15.75. I covered 2,900 on Friday in the after hours session for .22. I covered the rest today at 14.25. Total trade: 6,000 shares, netting .75 for a total of $4,500.

Mark to market gains are propelling the buzzards account to record highs with no end in sight to the selling. Still holding HSR, DXPE, ESCL, HRLY, IVAN, RGUS.

More to follow.

Tuesday, June 06, 2006

Tuesday June 6th update...

The day started off for the buzzard most dreadfully. A full buyin on ITKG, 24,000 shares I had to purchase prior to 12:00 pm est. Fortunately, there were plenty of sellers and I was able to get out without running up the price. 24,000 shares ITKG short from $2.25, forced to cover today at $2.42 for a loss of $4,080.

After the buyin the day got interesting. HOM was the big winner. Devistating allegations from Stocklemon put the stock in play, I shorted 4,000 shares into the news at $8.85. Here's what Lemon published:

Manufactured earnings, ghost companies and insiders dumping large chunks of shares. Needless to say, AMEX halted trading of HOM due to order imballances. HOM got as low as $4.70, then bounced its way back into the $6's prior to the close.

Upon investigating this company and CEO, I will be shorting all the shares I can find. The CEO Frank Fradella. Every single company this guy has been involved with has either filed for bankruptcy or have been sued for fraud by the SEC. Truly amazing. Roadkill of the finest variety for the buzzard to pick clean.

In more trading today, the buzzard covered his beautiful SIMC short of 2,700 shares at $11.45 at $10.05 for a tidy gain of $3,700.

Also, DXPE has reversed, adding to my m2m gains for the day, although still underwater on the trade, DXPE was down almost 3 full points today, marking a significant reversal for the stock.

Monday, June 05, 2006

Monday June 5th update...

What a beautiful day, DOW -200, NAS -40

The buzzard started a new short today SIMC. An absolutely beautiful chart, and the best part was the massive volume today. I started with 2,700 shares short at $11.45.

The best news of the day, ESCL was halted for the announcement that the SEC has begun a formal investigation into their dealings with Afinsa. I was calling for this 3 weeks ago on the Yahoo ESCL board due to the SEC filing of ESCL indicating that gross margins for their related party transactions with Afinsa were above 50% compared to non-related party gross margins of under 7%. This one will surely get nasty as the investigation continues. ESCL was down $1.51 today after the halt was lifted. The only regret with this is that I couldn't find more shares, I am stuck with 4,500 short.

Thursday, June 01, 2006

Thursday evening update...

I sold my 2,000 share long IFO position about an hour into the day today, sold at $28.13 and netted roughly $3,480. Not bad for an overnight long position. I also started some DXPE short today, 1,000 shares at $42.72. DXPE is a high flying IBD top 10 #1 pick that just today announced a 1mm share shelf offering. DXPE is significantly off its highs and will be taken off the IBD list more than likely this weekend. I also covered my JAVO short today, 14,000 shares at $1.28. A decent trade but taking up way too much margin. Net on the JAVO trade was $1,820.

Thursday June 1 update.

Yesterday at the end of the market day I purchased IFO. It's been on a major squeeze. They just announced a split which should drive the stock much higher. It's also a IBD top 10 play. I'm looking for a short term long on this stock split announcement. I have 2,000 shares long at $26.35

In addition to IFO as a long, I will be taking a short position this morning in DXPE. It has been one of the IBP top 10 runners, just announced a 1mm share shelf offering and should sell into this news. This selling should also take it off the IBP list. I am looking for DXPE to play out in much the same way that ERS did. Take a look at ERS's chart above. Once the momentum broke it was all down hill.

Also shorted 8,000 shares of IVAN at a modest $2.75. IVAN has been always been road kill. Short any runs this stock has, the latest takes it back to the upper channel from an earlier pump. This should be good for $.25-.50 in the short term.