Macro Tsimmis

intelligently hedged investment

SELL SHORT Best Buy (BBY), Mastercard (MA), & Wal-Mart (WMT)

Posted by intelledgement on Fri, 19 Sep 08

We detailed the reasons why we think it is prudent to short retailers earlier today in our IMSIP post recommending purchasing inverse consumer goods and services ETFs. Accordingly, in the ISOP, we are selling short retailer giant Wal-Mart (WMT), specialty retailer Best Buy (BBY), and consumer credit card vendor Mastercard (MA). Given the weakness in consumer spending that we anticipate over the next 12-to-18 months, we anticipate that all these companies are likely to experienced both sales and profits that are below both prior performance and expectations. And, of course, that this will adversely affect the price of their stock.

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