Let me start of this blog post by saying that I love it when companies survive the night but are tremendously trashed, as you can usually tell the direction of the stock within 5 minutes and they tend to be good for MAKE-YOUR-YEAR returns.

This should have been one of those stories for me today.

I had been trying to pick up 1k shares for 2.5 for a while this morning after getting rid of a bad O/N airline short that i had to keep due to the worst rule in the world, the Pattern-day-trader rule.

So I cover my lcc and take to trying to by 1k shares of lcc  (I was only really 5-10 cents off) and guess what happens, Charlie Gaspoino (I am relatively sure.) Says, (AND IM PARAPHRASING) ” Yeah, I know some guys, and they are high up in the fed, and they talking bout extending AIG teh bridge loan”

Of course im trying to buy, each time, the stocks already shot up by the time i place my order, SO eventually I manage to put in a market order, I buy at 4.01

Click on the chart to enlarge the chart part of the story.

My AIG trade 9 16 2008

Long and short is, Sometimes, the best move is to do nothing in times you really shouldnt be in there.

My advice for tommrow, if the company is still alive, and goes below $1.00 It might be a good time to buy.

Even with an 80% share dilution off of a recent pre-fnm panic, (20*.2) you would still value the stock at $4.

In addition to this, the company’s health is no longer in jeopardy. And there are buyers out there expressing interest.