You knew they would raid it down. Just too darned easy. I marvel at the opportunities these financials keep screwing up on. MGIC Investment
(MTG)
waits until a low to do its deal. Fannie
(FNM)
and Freddie
(FRE)
had those big spikes, but they weren't ready with their offerings.
I guess Washington Mutual
(WM)
waits until $7-$9 before it does its deal.
These financial companies, with the exception of Bank of America
(BAC)
, which caught the market just right on its preferred, simply don't understand the dire straits of their own businesses. We all know who is short on capital, and there is no sin raising it when your stock is up on a squeeze.
Consider Wachovia
(WB)
. It got the kiss of death today from Meredith Whitney at Oppenheimer, and it could have sold equity much higher when it had the chance. Now it is at the mercy of this brutal market, which is relentless in its unforgiving nature.
My advice to financials: There will be another short squeeze some time soon.
Be ready.
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