This column was originally published on RealMoney on March 14 at 9:17 a.m. EDT. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please
You asked for it. You asked for what some would regard as irresponsible, but others would describe as prudent. You asked for the Dirty Dozen that the shorts are operating on, and here they are:
- Friedman Billings(FBR - Get Report)
- Fremont General(FMT)
- Redwoods Trust(RWT)
- Newcastle Investment(NCT)
- American Home Mortgage(AHM)
- RAIT(RAS - Get Report)
- Thornburg Mortgage(TMA)
Notice that I'm not including
, which is on its deathbed. I am also not including
, which is also, to me, a goner.
Accredited is still alive, but I believe not for long, at least in this current form.
I do not believe that
is in trouble, although both are not done going down.
is in trouble, but it's been crummy for so long, I guess it doesn't matter. I do believe that
is still a bleeding hole but I would no more short
off this stuff, although a lot of others will.
Do I think that all of the Dirty Dozen will go out of business? That's not the question. I'm saying that these are the shorted stocks. If you think that some of them have liquidity problems, then you short them to zero. If you think that they don't, wait a week and buy them.