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Bear Shakeout


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3:05 (Dow Jones) Word on the street is PetroChina (PTR) is the biggest

company in the world today, sporting a market cap of more than $1 trillion,

with a T, after its debut on the Shanghai market. "My immediate reaction to

this news," writes Roger Nussbaum, an investment advisor at Your Source

Financial, "was to think of Cisco when it was the largest company in the world

with a $500 billion cap for about ten minutes in 2000." (PJV)

(http://randomroger.blogspot.com/)

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PTR leading the group...

 

-12.93%

 

What's going on, anyone have an idea?

621020[/snapback]

 

FXI holds Chinese H-shares, the ones that trade in Hong Kong. The ones that had a 100% run in two months trying to front-run the moment when China would let the nutcases out of the asylum and let them buy chinese shares outside of the domestic A-share market, which hold a 300 gazillion percent valuation premium for the same companies.

 

But now, Chinese authorites froze that plan, giving the front-runners the Shaft Of The People.

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PTR leading the group...

 

-12.93%

 

What's going on, anyone have an idea?

621020[/snapback]

 

The IPO was priced at 225 dollars (convert yuan to dollar). Why folks would bid it up to 260 is beyond me.

 

Someone asked me 2 weeks back why i even bothering messing around with the put options on this guy (PTR). Well, you'll find the answers shortly.

 

$$KACHINGO!!!$$

post-1444-1194297736_thumb.jpg

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The entire rationale behiund the Hang Seng rally was the valuation arbitrage between H and A shares. H shares, at a P/E of 35 were relatively cheap to A shares, that had a P/E of 80.

 

Great trade.

 

Right.

 

Now there IS no relative trade possible, so you now you're stuck with a long position in H shares at a P/E of 35, which is relatively cheap to.... well... lessee... eerrr.. :o

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PTR leading the group...

 

-12.93%

 

What's going on, anyone have an idea?

621020[/snapback]

 

The IPO was priced at 225 dollars (convert yuan to dollar). Why folks would bid it up to 260 is beyond me.

 

Someone asked me 2 weeks back why i even bothering messing around with the put options on this guy (PTR). Well, you'll find the answers shortly.

 

$$KACHINGO!!!$$

621025[/snapback]

 

Anyone want to take a guess on which day Buffet exited his entire PTR position?

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PTR leading the group...

 

-12.93%

 

What's going on, anyone have an idea?

621020[/snapback]

Cold feet at the people's Central Committee.

 

 

China pricks bubble in Hong Kong market

 

Bloomberg News, Reuters, The Associated Press

Published: November 5, 2007

 

 

HONG KONG: Hong Kong's blue chip stocks plunged Monday after China's prime minister raised uncertainties about a proposal to allow mainland citizens to invest directly in the city's listed securities. Tribune

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Looking at that chart, Madness, the ol' greed starts cutting in and I start wondering if I should wait to cover at that gap..... 170ish.....

 

 

 

 

 

or lower....

621029[/snapback]

 

If we get a gap down to 200 tomorrow, my guess is my December 200 puts will be up 300 - 400% from my entry price. We shouldn't get greedy. Right? :mellow:

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