Downey Savings

[Rocker_IHB]

In one week their stock has lost 25%, today it closed 6.75 and one year ago was 74.85, stock traders must know something:



BK / FDIC takeover?



<a href="http://seekingalpha.com/symbol/dsl">I have read many articles</a> about how their loan books are getting worse, how they have too much exposure to CA RE.



Their Corporate Headquarters are on Jamboree and the 73 Fwy., a lot of stress must be going on.



Another OC based lender casualty of "The Great Housing Bubble"?



Proximity to the 405 Fwy. must have very bad Feng Shui, now it looks like a lender cemetery.

 

[screwrealestate_IHB]

I shorted it with puts from 22 to 12 then jumped out thinking it would correct up again after one cycle up and down. It didn't, so I got back in a small put position that is now up over 130%. Its a shame that it is at 6 bucks and I have about 7X more money in FED puts. Hopefully FED follows suit. I really don't see how either can survive with a market like this. You should read the statements from the companies and their loan quality. I was convinced FED was garbage when they have 85% Stated Income Loans with something like 60% Options if I recall correctly.