Great Shorting Opportunity, Care of Obama

Let me get this straight: Obama releases a harebrained scheme with the word "infrastructure" in the headline. Close analysis reveals that the plan involves changing light bulbs in government buildings.

As a result, manufacturers of construction equipment that you can buy slightly used at huge discounts rallied strongly. Also, the worst, most heavily shorted stocks rallied the most.

Does that make any sense?

Disclosure: Short COF, JOE, WFC, WY, BBY, CAT, etc.

Comments

[thegrandibah:]

were these 5 lines supposed to confuse someone with equity research?

2008 Dec 10 08:44 AM

[John Cordes:]

Crawl back in your hole.

2008 Dec 10 09:06 AM

[k45:]

Short term or medium term? When CAT sells with a PE of 6 and a 5% dividend and less than 50% payout ratio, it could be a good long term (5 year) investment. Similar for DE. OSK was even better.

2008 Dec 10 09:13 AM

[SJD:]

Not a compelling analysis.

2008 Dec 10 09:25 AM

[investor88:]

Trade what you see, now is rally mode until proven otherwise. Go long some with stop loss.

2008 Dec 10 09:45 AM

[sumosama:]

Never thought I would be defending Obama, but give the guy a break...let him at least take office. I see you are getting squeezed on the shorts. Glad to see that!

2008 Dec 10 09:53 AM

[drbob66:]

Yeah, I'm also glad to see the author getting his shorts squeezed. I hope he loses a LOT of money...simply for writing such a meaningless article.

"Also, the worst, most heavily shorted stocks rallied the most...Does that make any sense?"

Uh, yeah...it's called short-covering. You might want to try it sometime.

2008 Dec 10 03:44 PM

[Stephen Ros...:]

Yeah, guys. Admit the article is short. But the guy has been shorting stuff for a year now and has been very right.

2008 Dec 10 08:37 PM