Did Karen Finerman Get Short Squeezed on Barnes & Noble (BKS)?

May 20, 2011
J. Webster
Comments Off on Did Karen Finerman Get Short Squeezed on Barnes & Noble (BKS)?

Back in September of 2010, Karen Finerman, on Fast Money, said she was short Barnes & Noble (BKS), saying their projections for the stock in the coming years were ‘absolutely ridiculous‘. And then just yesterday Finerman said she was short BKS again. Here’s the first video from CNBC.

Then again on May 19, 2011, Finerman said she was again short BKS or still short the stock. However, the very next day, Liberty Media came to save the day for BKS longs with their $17 per share offer and it sent the shorts covering. And probably sent Finerman under the desk for a stiff drink. I wonder if Mrs. Finerman got out or is still short? Did she gets squeezed?

At the 2:30 mark Karen says she’s short BKS:

BKS is now running way past the $17 price offer and bumping up closer to $19 a share. Some analysts are even saying BKS is worth $20 a share and there could be an improved offer from someone else. Seems doubtful. BKS longs got their prayers answered, don’t get greedy.

Maybe we’ll hear from Finerman later today on Fast Money to see exactly what she did or is going to do with Barnes & Noble’s stock. Of course she is right about the stock, and Amazon just issued a report saying they’re selling more eBooks than regular books, to further show that retail book selling is in trouble. Yet if you are short the stock right now you are in trouble. Liberty Media must have something up their sleeve if they are attempting to come and in about buy BKS in an industry that’s dying.

There was a wise Tweet from MarketFolly about shorting stocks:

@marketfolly Market Folly
$BKS shows why shorting is so hard. Shorts see dying industry thesis proven correct, then unsolicited bid swoops in & wipes out their gains

Related Posts Plugin for WordPress, Blogger...

Comments are closed.