WC Whiner

Home Depot: Look for Improvements

What risk does the ongoing housing slowdown pose to your thesis?

One note, for more-efficient exposure long or short, I like single-stock futures better than synthetic stock. For identical exposure, the synthetic long costs $360 cash and takes $1600 margin, the SSF costs $0 cash and takes $750 margin.

The Consolation Prize Theory: Why Home Depot Should Profit From the Housing Slowdown

They have, however, seen his contractors.

I like your idea. Still, my prediction is that the housing slowdown is going to take down all its suppliers too hard for you to notice the effect unless you have a long-short approach. If you get a good short rebate, then sure, short homebuilder suppliers against Home Despot. Otherwise, I'd probably just keep fading homebuilder rallies.

(FD: out of that trade again now, but I'll be back in.)