Long time readers of The Crimes have, no doubt, already noted the absence of hot tips here lately. Though it was our intent to make all of you rich, the housing crisis and $140 oil have made our stock market predictions look...well, less than successful. Hell, why pussyfoot? My hot tip was not only worse that The Famous Author's, putting our dwindling funds into Image Entertainment Inc. (DISK) was an outright DISASTER.
DISK closed Wednesday at $1.17 a share. We bought 2,000 shares last February at $2.15. Our original capital, $7,500, is now down to $2,700. For anybody that still cares, Image Entertainment, Inc. is an independent licensee, producer and distributor of home entertainment programming. They lost a buck a share in the most recent fiscal year, but they think they might make a profit in 2009.
We bought the stock on a tip that the merger, which ran the stock to $4 and then fell apart, might be reinstated, or another partner might be found at $3.50.
The one saving grace in all this: EVERYbody's hot tip sucked. One tipster gave me DISK, but...
...another gave me American Apparel (AAP). Told me the product line was taking off, the stock was a steal at $13. It's now $6.20.
And another tipster gave me Middlebrook Pharmaceutical at $4, said it had a new system for coating drugs that was sure to attract a big merger partner. MBRK closed yesterday at $2.30.
In all honesty, it's been a tough year for tipsters. At least for the guys betting long (on prices rising). What we should have done back in February, when we were trying to recover from TFA's ugly losses, was bet the farm on stock market PUTS--bets that stock prices would fall.
That I'm tempted to finally see the light and go short is a sure sign the market has turned. Let's stick with DISK a while longer. At least until I can dig up something that will work.
Maybe a magic lamp.