Allan Edwards CEO of the Markets Are Open stated that HCBK (Hudson City Bancorp) went KOBATA this morning. KOBATA is a special name on Wall Street meaning Knocked it Out of the Ballpark Above Top Anticipations. Edwards commenced "it has been years since I have seen the KOBATA and now 2, in 2 days?" HCBK delivered, producing earnings growth of 11% and earnings per share of 29 cents a share. HCBK is currently down over 4% as trading nears its close. Edwards stated "often times a stock is sold off into an excellent earnings report." He explained "in the stock market a lot of people focus on many stocks and it is much easier for a stock to drop quickly as opposed to go up quickly, an investor will do half the research in selling a stock as he does in buying a stock and this has created the perfect shortpportunity we all see today." A shortpportunity is Wall Street lingo meaning an excellent opportunity to sell a stock shares short.
The usually calm and stoic Edwards added, "Go ahead [expletive] sell a stock which has a tangible book value of $10.93 and earnings in the next year of $1.2, meaning I can buy out the company strip it of its cash and then make a growing perpetuity of 600 million a year for the foreseeable future. The current valuation assumes HCBK will be solvent for less than a year." Edwards shouted "if I was back at my hedge fund Osiris we would have taken over HCBK today these prices they are ridiculous!" Asked if he had any closing remarks Edwards responded "I have never seen a stock sell off or even go down on a KOBATA, I am very discouraged by Wall Street, today was like the May 5th flash crash all over again, how can I explain this?"
Despite this bullish sentiment and Edwards usual strong ability to lift a stock by mentioning it, HCBK remains down on the day as we approach the close.
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