Tuesday, June 16, 2009

Early Movers 06/16/09

AlphaNinja - The markets pulled back after opening about 1/3 of a percent higher, now just above flat.

Over the last few weeks the downside movers have been largely made up of companies issuing more stock - do you want the other side of that trade? (usually no, at least for the short term)

Also of note is Ashford Realty Trust (AHT), downgraded today by RW Baird based on its holdings of mezzanine debt in Extended Stay. As background, these are securities that helped finance the 2007 LBO(leveraged buyout) of Extended Stay by David Lichtenstein for $8billion, of which 92.5% was borrowed money. Anyway, there is currently a lawsuit going on between parties on opposite ends of the capital structure (well the same end, but different steps on the ladder).

Here is the organizational structure (from ZeroHedge, from somewhere else) of Extended Stay. I'm at a loss:

And todays early gainers and losers:

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