Hasta la Vista, Gafisa (But We'll Be Back)

Includes: BIDU, GFA
by: TraderMark

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.

[Oct 21, 2009: IBD - Gafisa: What Housing Slump? Homebuilders Ride Brazilian's Resilient Economy]

[Sep 18, 2009: Brazil's Lula Has Good Chance to Build 1M Low Income Homes by 2011]

[Sep 15, 2009: Gafisa Denies Any Plans to Issue Shares in 2009, but Interested in Debt Offerings]

[Sep 2, 2009: Gafisa Downgraded on Potential Share Offering]

[Mar 30, 2009: Restarting Gafisa as Sam Zell Increases Stake]

[Oct 22, 2008: Sam Zell Increases Stake to Gafisa to 18.7%]

[Nov 19, 2007: Initiated a Position in Gafisa - Brazilian Homebuilder]

Author's Disclosure: No position