Since we are almost about 3 months since I shorted LEND, I thought I would check in here…I’m glad to see that some other people have also made this trade.
As I stated in my original post, this is a fundamentally driven position trade. My outlook on LEND has not changed and I think the possability for LEND to go ZERO is still very high. I’m looking to add more short exposure to the whole crumbling housing market thesis.
I’m trying to find out which of the overleveraged homebuilders are going to go down the toilet as well…Standard Pacific looks like they might be facing a serious cash crunch in the near future…though their financial engineering makes it difficult to identify their exposure to a depreciating market.
I see poway is thinking of shorting WAMU, and as much as I hate to be on her side of the trade, I think it is probably a good short too…anecodatly they are about to move into a big shiny new hirise in Seattle…which has sometimes marked a company’s top…(remember timewarner buying AOL and moving into their big new billion dollar office space in 2000?)
