Almost identical setup and reasons we sold Baidu (NASDAQ:BIDU) Friday - except unlike Baidu we benefited greatly the entire year from the huge run by Brazilian home builder Gafisa (NYSE:GFA) in 2009. Much like BIDU would be setting up for greater downside if the "double bottom" at $395 broke, the exact same comment for Gafisa at $30.
At this point I will be more interested in Gafisa over $33, rather than down here.
We are exiting Gafisa completely after holding since March 30th (when the stock was purchased under $10!), in various weightings; only a (less than) 0.1% position was remaining. We were stopped out of most of the position December 15th at $32.30s.
We've owned this name every year of the blog, and I expect to own it every year for the next decade. But for now hasta la vista...
As Ahnold says... we'll be back.
Author's Disclosure: No position