Best stocks to short in the credit card sector?
- Thread starter Cutten
- Start date
Discover got a nice pop this week based on some bs earnings nonsense and their announcement that they will apply for TARP funds. Good opportunity to fade that.
I'm personally short Capital One, but not feeling all that great about it anymore.
The news is clearly out regarding the dire straits of anybody in the credit card business. I'm no longer sure what could be the catalyst to move these stocks down even more.
I'm planning on doing a serious reevaluation of my COF short to decide whether to add to it or just close it.
In the comm'l re area, I'm looking to short KIM on any bounce it gets from inaguration/BO optimism in January.
I'm personally short Capital One, but not feeling all that great about it anymore.
The news is clearly out regarding the dire straits of anybody in the credit card business. I'm no longer sure what could be the catalyst to move these stocks down even more.
I'm planning on doing a serious reevaluation of my COF short to decide whether to add to it or just close it.
In the comm'l re area, I'm looking to short KIM on any bounce it gets from inaguration/BO optimism in January.
That's what people (including me on occasion) said about BSC, LEH, FNM, ABK, MBI, and pretty much the entire real estate sector numerous times in 2008. Each time it was wrong. Thanks for your suggestions though!
"Remember that stocks are never too high for you to begin buying or too low to begin selling." - Jesse Livermore
http://www.calculatedriskblog.com/2009/01/cof-strikingly-high-fico-customers.html
These closed in loans in fact were to pretty darn strikingly high FICO customers, basically super prime customers by profile, but they certainly have a degraded a lot more quickly than the overall super prime sort of equivalent super prime credit card customer. You know, they tend to be -- a couple of things about the boom and bust market that we have seen both they tend to perform -- they are performing worse in the boom and bust market we can see that than the credit cards, and they have a higher concentration in boom and bust markets as well. ...
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Stocks to watch:
COF AXP DFS C
These closed in loans in fact were to pretty darn strikingly high FICO customers, basically super prime customers by profile, but they certainly have a degraded a lot more quickly than the overall super prime sort of equivalent super prime credit card customer. You know, they tend to be -- a couple of things about the boom and bust market that we have seen both they tend to perform -- they are performing worse in the boom and bust market we can see that than the credit cards, and they have a higher concentration in boom and bust markets as well. ...
****************
Stocks to watch:
COF AXP DFS C