I now have $1000 to $2000 each (small 'cause you can lose it all) in January put options (shorting) on the following retailers:
Circuit City - CC
Amazon.com - AMZN
Home Depot - HD
Federated Department Stores - FD
Just fun money to play around with. I think it's gonna get brutal out there as the housing ATM has now closed, credit is drying up, interest rates are up, the wealth effect is over, real estate industrial complex job losses mount, and consumer panic sets in.
I used to be a buyer for May Company, recently bought by Federated, and boy their stores are just awful, boring, frustrating and outdated. Amazon has a 47 PE that needs to get whacked, Home Depot is run by an incompetent CEO and no longer has the housing/construction windfall, and Circuit City is Best Buy's poor cousin, and it's tough to justify $5000 on a new TV when you just "lost" $100,000 on your house.
I'll keep you posted. Up 120% on Home Depot in a month already. Anyone else have any brilliant suggestions?
July 21, 2006
Posted by blogger at 7/21/2006