Tuesday 8 January 2008

New Share Trades...CFC, MBI, SPLS, KMX, RIMM

Have just done a number of trades...will try to elaborate further later, but just want to post them first here, and say that there are a few things getting smashed in the market today, which is why I just bought CFC at $6.56 (down ~13%) and MBIA at $15.16 (down ~15%), much as I hate both companies, and in particular question CFC's ability to survive, I think a few quite news days and some up days in the stock market generally can take these stocks 10-20% higher from here easily, and since bankruptcy risk is not near-term, especially for MBIA, I think I am ok with a short-term long.

Fundamentally, the slowdown/recession seems to be upon us, so I want to have some good fundamental shorts. Staples will suffer as businesses cut back, so have shorted some at $21.86, Carmax (KMX) will find out that the used car business is not the place to be in a recession, so I've sold some at $19.02, and RIMM i just think is a bit over-hyped so am selling some at $102.43. I just got an iPhone recently, and I think over time it will filter through to investors that there CAN be competitors to the Blackberry.


Yours,
2and20

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