Saturday, August 26, 2006

Follow up on credit shorts---

Credit Related: (Housing related stocks)

Barron’s: An article examining the “overdone” sell-off in housing. I like the discussion but rather wait into Q4. As a bear this sep/early October can be rewarding to short select groups. Although, I agree with waiting for strength in homebuilders give the extreme oversold conditions. Fundamentalists are certainly interested here and given the beta of some names like TOL-a strong recovery can help managers Alpha.

Negative Housing perhaps becoming too fashionable of a story on Wall St.

Homebuilders have corrected since August 2005 and have given up close to 40%+ of their value.

REITS: Mortgage Lenders are vulnerable but a tricky play in finding the right name in the group.

Some brokers have expanded to the mortgage business and remain a question mark.

LEH and BSC- remain shorts to consider on a timely fashion.

I am interested in LEH short in the near-term .

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