I've lost big money on trades before - so I know how this could...

I've lost big money on trades before - so I know how this could be a huge blow to some holders. For the sake of helping some of you avoid this happening again, I wanted to provide a succinct explanation as to how I viewed FGE over time.

For anybody who didn't realise they were "picking up pennies in front of a steamroller" - maybe it is worth doing a bit of homework on banking covenants. I actually thought FGE might be worth about $2 per share in late November (as I wrote in a post - cannot remember my exact calcs) when trading resumed after the plummett. However as many leverage covenants are based on some sort of debt to EBITDA - it was a massive warning sign when the update on the 29th Jan came out and there was negative EBITDA. Even though I am a very short term trader - FGE would have become a short only for me, and never long (although BTW I didn't trade it after that Ann at all).

You can get a very rough idea of how the bankers would be looking at FGE from recent Anns for these companies as follows, EHL ann on 22/10/13, BLY 1/10/13, SSM 23/5/13, PBP 25/10/13, (I'm sure there are heaps more I have missed) even if you have no banking background. There are plenty of resources on-line to assist with these ratios.

Good luck to those who have been hit hard - I hope you all can learn from it and move on.