Sunday, January 11, 2009

The Short Madoff Stocks Play

Now that we know that the government is liquidating Bernard L. Madoff Investment Securities, it may mean that there will be some downward pressure on the stocks that Madoff's firm owns. Does this mean that there could be some short squeeze plays here? This is assuming that they still actually own the stocks that the company reported to the SEC as of September 30, 2008.

For example, his company reportedly owns over 2 million shares of the New America High Income Fund Inc. (HYB), a junk bond closed end fund. This amounts to about 1.8% of the shares outstanding.

Hicks Acquisition Co. I Inc. (TOH) is another Madoff stock, of which his company reportedly owns over 500,000 shares or about three quarters of a percent of all the company's outstanding shares. It is interesting to note that according to Yahoo Finance, Hicks is a Dallas, Texas based company, founded in 2007, with no significant operations. Yet the company has a market cap of almost half a billion dollars.

For an Excel database of some of the significant shareholdings of Bernie Madoff, which can be downloaded and sorted, go to

Author does not own any of the above.


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