![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiA-U6RY7E0MRSBnKgvvBUCwiHj9y_dP65HFUnR_qmfq6MUfPpD2dQ4OiHdl5WkvfWN3ScqlJl55-kciFif7_yE21iPkQ8yOLW4_xC70s5iNM25ka16vPs46BKap7DnWIk_3lsrrQ/s400/market_snapshot_march_31_2009_1.jpg)
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Today I bought April 100 puts in Goldman Sachs at 4.40.
I bought extra SRS at 54.04. Remember I let some out at 59.86 yesterday.
And I have a new one here. I bought September 10 puts in American Campus Communities, Inc. - ticker ACC - for 1.20 apiece. I believe it's some REIT that traffics in student housing. A well-known blogger/trader is touting it as a potential GGP.
Here's a refresher on strip-mall operator GGP:
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgaFcenMHqIKG6p7KONi2adr4a5aIIhpnb_Ey7n7WWgshdMFe9A-OfuyoB9zyIckZUlAQ2yNDFoM1lfe-HLlAOXjkpVpJWK5Ypy2o30_Is7tg8sjBaoiAbJ5wzGPeBlWJL4Zx26gw/s400/ggp_2_year_chart_march_2009.png)
This particular blogger had a good record last year - to put it mildly. I'd reveal his name but this pick of his is for *paying subscribers*. Me? No, I don't pay for this stuff. I inferred the ticker from data on his blog. If you really need to know who's beared up on this stock, email me on the side.
The stock is 14% shorted according to Yahoo; and it has only $28 million in cash versus $1.28 billion in debt. So it looks like the word is out....and certainly puts are priced high enough to reflect that. If my account and/or the stock firms up I may sell calls against the puts. I may turn my position into a *risk reversal* or an outright *synthetic short*. My first impression is that this company is not a *GGP*, not in the next six months anyway. Most certainly, a dividend cut/elimination is forthcoming. I'll be doing more research on this one - when I get a chance.
1 comment:
I think this is the short of the year and I believe they will have to cut their dividend to .26/share in order to stay in compliance with their debt covenants.
I've done some analysis on my blog:
http://www.stripnomics.com/american-campus-communities-acc-short-of-the-year
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