The First Horse Out Of A Burning Barn Gets Scorched The Least


by Dave Kranzler, Investment Research Dynamics:
From a Short Seller’s Journal Subscriber: I just read the piece on Denver homes and the idea of taking a lower price. $100,000 less jumped out. We are selling our overpriced turkey in the clouds in a posh area of Nevada where stupid money goes to die.

Our contract price is $115,000 less than an appraisal done 4 months ago. All the realtors think that prices in the hills will continue upwards. I know better and locales like this are primed for a very ugly drop. That’s our reason for taking $115,000 less than appraisal value

The first horse out of a burning barn gets scortched the least . Thank you for that tip Worth the price of the newsletter times 10 or 20…

[Note: He’s referencing the July 9th issue of Short Seller’s Journal, in which discussed the high-end housing areas in Denver with respect to nothing moving but that a $100k price drop by the first seller will move that house and then re-price the entire market. Homes are like junk bonds – they go from being “illiquid” on the offered side to being “illiquid” on the bid side until someone initiates “step-function” pricing to force the first real trade and define where the bid side cares]

FYI: $CMG closed at $395 today. I recommended shorting it in the May 2nd issue at $475. That’s a 17.8{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} unannualized ROR in about 10 weeks. The subscribers who bought puts did even better…

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