Comments on: Goldman Squeezes Simon Property Shorts

By: Reviewing My Picks and Investment Theses

Reviewing My Picks and Investment Theses — Mon, 08 Mar 2010 15:59:59 +0000

[...] Short Simon Properties (SPG) @ $51: Down 54%. I’ve traded around this position a few times, with total losses of around 25% on it. I didn’t cover my initial $51 short in the $20’s when I had the chance. Got greedy, figuring they were headed to zero just like GGP. Then the Fed/Gov stepped in with more liquidity than God, and raising capital became much easier, especially for a well-connected REIT like SPG. [...]

By: JohnKing

JohnKing — Sat, 16 May 2009 13:37:28 +0000

Simon is having issues making utility payments on their properties but I guess GS will do a pump and dump. Pension funds will line up to buy the secondary stuff and hopefully keep the lights on for little longer.

http://www.palmbeachpost.com/business/content/business/epaper/2009/05/12/a1a_pbmall_0513.html?imw=Y

“Despite the foreclosure and the utility bill glitches, Simon said it has not “abandoned” the mall. But the center’s future is far from certain. The $27,948 April water bill, which was due May 7, remains unpaid.”

By: Stressing the tests « Market Commentary

Stressing the tests « Market Commentary — Fri, 08 May 2009 08:49:11 +0000

[...] Property Group (SPG) diluted shareholders for the second time this year, which combined with Goldman’s SPG short squeeze last month has left the public bagholding worthless [...]

By: Performance of Goldman Sachs Conviction Buy List

Performance of Goldman Sachs Conviction Buy List — Sat, 02 May 2009 18:49:37 +0000

[...] Could it be that Goldman adds stocks to their conviction buy list when their trading desk needs to unload a bunch of shares on someone? It’s possible, but I have no proof of this. It’s pure speculation. They got into trouble in 2003 for what were basically conflicts of interests between their various desks, as I understand it. The SEC document is here. Also see my post on the SPG squeeze. [...]

By: Simon Properties Earnings Preview

Simon Properties Earnings Preview — Thu, 30 Apr 2009 19:17:37 +0000

[...] REIT, reports Q1 earnings tomorrow morning before the bell. It should be interesting. The brutal short-squeeze involving Goldman Sachs (among others) sure hasn’t stopped. I’m curious about a few [...]

By: hedgie

hedgie — Tue, 21 Apr 2009 14:18:27 +0000

It bemused me that on the same day GGP announced its bankruptcy the other mall REITs moved sharply upward. It certainly didn’t feel natural…

By: eh

eh — Tue, 21 Apr 2009 08:13:28 +0000

Something is definitely going on. Take KIM for example (as well) — jumps 50% from the discounted offer price when the offering resulted in a massive share dilution in this poor and getting worse operating environment. I don’t think being able to pay down debt with the proceeds warrants that much optimism.

By: david

david — Tue, 21 Apr 2009 05:58:13 +0000

Very well researched post.
A cartoon on Jesse’s Cafe Americain blog sums it up

http://1.bp.blogspot.com/_H2DePAZe2gA/Se0v4wGaInI/AAAAAAAAI58/AxMJa-JQHOA/s1600-h/usbanksnaked.jpg

I too write a blog,
http://thebullishbear.blogspot.com

Do take a look

By: Nato

Nato — Tue, 21 Apr 2009 04:46:50 +0000

Sounds like their M.O. Find out someone else’s book then play the other side. That explains the SRS trade as well, as last I checked Simon is the largest component.

When you have free money, and tons of it, its fun and profitable to do the non-sensible trade and rake in the cash.

I wonder if all that free cash will make its way into commodities too?

By: Ven

Ven — Tue, 21 Apr 2009 01:54:13 +0000

Thanks for this post.
I enjoy reading your blog and finding gems like this and the STT filing back in January.

Keep up the good work.