Lehman Brothers Holdings Inc. [[LEH]] is screaming mercy. However, men who are short, like “The Fly,” will offer them no quarter.
They get the feared and unbelievably ominous black flag.
Into such weakness, it makes sense to be cautious and remember how corrupt the government is, with their egregious lending facilities. Like I said before, if you have been buried under losses, short the market while it spiked, now is the time to lower the volume and take a respite.
For me, I’m all about pressing the envelope, until it can be pressed no more.
Naturally, I have long positions to hedge against my shorts. However, I am willing to bet, with a certain amount of certitude, we go substantially lower.
Consider [[SKF]] around $133: it is cheap. I believe, under benign conditions, SKF should trade $140-145. The gains in the banks will not hold, because they cannot. Bear markets do not end quickly. And, when a sector gets blown out, it does not recovery immediately.
If you must, consider last year to be like 1989,while today is similar to 1990. We still have downside.
Right here, with new money, I would sell short Comerica Incorporated [[CMA]] , Las Vegas Sands Corp. [[LVS]] , First Horizon National Corporation [[FHN]] , Pzena Investment Management, Inc. [[PZN]] and Continental Airlines, Inc. [[CAL]] .
On the long side, I would buy National-Oilwell Varco, Inc. [[NOV]] , Barnes & Noble, Inc. [[BKS]] and Transocean Inc. [[RIG]] .
Also, for a huge dice roll, I hear decent things on [[PKT]] .
Comments »