Fly had an excellent post today explaining reasons to short Auto companies. If the house does not pass this bailout you can kiss your these companies goodbye. Going through Fly’s list tonight, I must say it is super ugly for the industry.
Here are a few names at critical points:
AutoNation, Inc. [[AN]] Short below 10.75
AmeriCredit Corp. [[ACF]] Short below 9.50
Advance Auto Parts, Inc. [[AAP]] Short below 38.00
[[CRMT]] Short below 17.50
Copart, Inc. [[CPRT]] Short below 37.50
Cummins Inc. [[CMI]] Short below 37.85
Note: These are the new financials, should the bailout not go as planned, you will want to be familiar with these names.
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