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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