When you think “auto,” I bet you only conjure up thoughts of bullshit General Motors Corporation [[GM]] or Ford Motor Company [[F]] cars. But, there is so much more to bet against.
With the credit markets seized up, the auto industry is in crisis. Not only do American cars suck, but its potential buyers are not able to get loans.
Mike Jackson, CEO of AutoNation, Inc. [[AN]] , said only 80% of prime borrowers are getting loan approval, while a mere 20% of subprime idiots get the honor and privilege of owning a new or used car.
People, we are going back to the horse and buggy.
Short candidates for the credit aspect of the auto industry include: AmeriCredit Corp. [[ACF]] , CompuCredit Corporation [[CCRT]] and [[CACC]] .
Parts and dealers include: AutoZone, Inc. [[AZO]] , AutoNation, Inc. [[AN]] , Advance Auto Parts, Inc. [[AAP]] , CarMax, Inc [[KMX]] , Penske Automotive Group, Inc. [[PAG]] , Group 1 Automotive, Inc. [[GPI]] , Sonic Automotive, Inc. [[SAH]] , Asbury Automotive Group, Inc. [[ABG]] , [[CRMT]] , Copart, Inc. [[CPRT]] , Cummins Inc. [[CMI]] , BorgWarner Inc. [[BWA]] , Tenneco Inc. [[TEN]] and [[LAD]] .
Auto makers include: General Motors Corporation [[GM]] , Ford Motor Company [[F]] , Toyota Motor Corporation (ADR) [[TM]] , Daimler AG (USA) [[DAI]] , [[NSANY]] , PACCAR Inc [[PCAR]] , Navistar International Corporation [[NAV]] , WABCO Holdings Inc. [[WBC]] , Oshkosh Corporation [[OSK]] and [[VOLVY]] .
Look, even the Japanese auto industry is saddled with 25% decreases in unit sales. Take a basket of bullshit auto stocks and short them to zero.
In other news, insurance stocks are in dire straights. Any company with credit exposure is getting blown out, including MetLife, Inc. [[MET]] , Willis Group Holdings Limited [[WSH]] , XL Capital Ltd. [[XL]] , Financial Federal Corporation [[FIF]] and World Acceptance Corp. [[WRLD]] .
There is just so much to bet against.
With my money, I took some bearish positions on a variety of auto names and, as always, increased my [[SRS]] holdings.
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I would think the parts stores would do all right because people will be trying to squeeze every last mile out of their ’95 Grand Am rather then trade up.
Has anyone seen my mustache ? I think it got punched off by POT FCX and SLV.
Nah. The same thing was said for HD and LOW, when people stopped buying new houses.
Less cars mean less parts. It’s pretty simple.
Nice post last night Master Fly 🙁
Interesting article.
http://finance.yahoo.com/tech-ticker/article/83221/Bailout-a-Done-Deal%2C-So-What-Happens-Now%3F
Long Amish buggy technology.
HD and LOW are where you go to improve your house. Your house doesn’t need to function it just needs to not fall down. A car needs to function. Which requires a lot more work and trips to AutoZone.
Are we allowed poem writing privileges on this post?
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not looking for a bailout bounce?
My 94 Volvo wagon is suddenly a progressive hipster ride. Covered BOOM short.
Watch your ass on that CACC… 32% of its float is short. Over 100 days to cover at average daily volume.
-DT
No Jake, we are not
DT, you love the CACC
If I had to pick one stock to hold from today through the end of year, I think it would be MVIS, heh.
Last night’s post belongs in The Fly’s Greatest Hits.
what do people on this board think of Apple at $100 these days?
Bravo Danny.
Usually in recessions or downturns auto part stores do OK because individuals, at least the mechanically inclined ones, do their own repairs instead of paying a mechanic $60-$100/hour. I can do a brake job myself but I’m only going to do it if I need to save a few bucks.
my bullshit town is loaded with auto parts stores, many more than you would expect, with new ones being built. I am told they only survive because of egregious 400% markups on their wares.
DT, obviously, likes “long CACC”
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Jake,
You’re like a tumor growing on this site.
-DT
you can’t go roadhunting, with a two zillion candlepower spotlight, if your car is broke down.
Donny, about yesterday’s comment…
Darrell Issa: “I don’t have a problem that there is a problem and it’s a problem that needs to be dealt with…”
Copying my jokes n’ shit Jake, fools always be biting my shit.
Problematic in itself Anton
Got out of SdS at 75, just for whatever reason.
Sorry, Danny, you know how much I like to pile on the angry commie.
Especially when those easy peasy ones are left hanging out there.
‘Sides, you should think of it as a compliment. I always do. 😉
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Vix singin’ “Ain’t no stoppin us now – we’re on the move!””
…you can’t go roadhunting, with a two zillion candlepower spotlight, if your car is broke down.
Possible “gem of the day” candidate!
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wow…POT has been halted in Canadian trading.. because it was falling too fast?
@ CAP – I shaved off my mustache last night as a preemptive measure.
It has been punched off twice in the last week… so I figured why not get out in front of the curve this time.
Right now I feel like I’m being humped by a retired greyhound.
But the day ain’t over.
Fuck off haters!
Ta-Ta!
Got nuthin but love for ya Donny!
I’m in DIG at $55.10
I want to short these stocks, but I’m afraid the bailout might cause another jump. Do you think we should wait until Friday?
no POT is getting smoked in trading on the TSX
It has been said that it would take a “a pearl harbor like event” to get people to go along with a plan that would involve controlling the middle eastern oil… A “pearl harbor like event” is required to go to war.
Buffett says financial crisis is an “economic pearl harbor”
http://biz.yahoo.com/ap/081002/buffett_economy.html
So who’s the focus on next? Russia, Venezuala, Iran?
CNBC tease read by Michelle Caruso-Carbrera: “In these stressful times, David Pogue looks for some digital relief.”
Hey Michelle, I need some digital relief. Can you can give to me?
Fly, it is “dire STRAITS”.
This ain’t no poker game.
And FUCK the bailouts! Let those brokerages, banks, brokers and bankers GO FUCKIN’ BROKE!
I don’t give a fuck if I also gto broke!
Even if I have to WALK AROUND BAREFOOT!
We DON”T WANT no Christmas Tree Bailout bill!
FUCK the banks who “can’t lend”. FUCK buying
on credit! In fact FUCK BUYING!
Jake, you’re right. I didn’t appreciate that angle of it, the piling on of the dirty commie.
“it’s a financial pearl harbor!”
Interesting, considering the ill, loomed, and naughty said it would take a “pearl harbor like event” to convince the nation we need to go to war, in order to succeed in taking control of the middle east through owning their oil…
Wonder who’s next?
Donny,
Are you getting some clown love today?
Maybe the damn bill won’t pass the house after all.
The New Improved Bail-out Bill is a pile of CRAP. Despite The Fly’s promise of dire consequences if it fails, I disagree. It does not fix the problem of dead mortgages. It only helps out the bankers, and, as Denninger says http://market-ticker.denninger.net/archives/2008/09/30.html was only written to bail-out foreign investors. The US taxpayer is getting clown-raped if this passes.
I’m going down with the sinking GG ship, man.
It was nice knowing you alls.
One final “fcuk you!” to Alan Greenspan
Whilst I soil my egregious Small Pauls.
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“it’s a financial pearl harbor!”
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Conspiracy theories aside, does anyone think it’s a bit odd that Yahoo! Finance is running this Warren Buffet quote AGAIN (today), five days or so after he said it?
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Fuck You Alan Greenspan!
“what do people on this board think of Apple at $100 these days?”
I think I should have sold last week.
Soooooo, Danny, do we make new low today? About 19 SPX points. And what was the signal that caused you to sell? 😉
Apple is rotten. You don’t need an iPod when you’re dumpster diving for food.
We’re back to no-bailout heart attack levels, Bernanke doing reverse repo today to make congress crap their pants. Vote for the bailout or else.
american car companies made great cars in the 70’s-vega,pinto,falcon,citation,for 40years they have put out bullshit hoping that a little flag waving would create sales=fuck them and jeff immelt sucks.
If the underlying assets of SRS go to zero, how high does SRS go?