I hit my stop loss on GM.
music selection: “Don’t Dream It’s Over” — Crowded House
I sold shares of General Motors (GM) short on 10OCT2016 for 32.32 a share. The thesis is the growing amount of deep subprime lending is destined to end badly for the big auto makers. I still believe in that thesis and see used car prices are beginning to fall. But Mr. Market is feeling euphoric about Detroit. I hate to realize the loss but I respect my stops. I’ve learned the hard way on that point.
I bought to close today at 40.42 a share. The trade was in force for 353 days and yields a negative 26.49% annualized. I am recording a loss of 1,255 on the transaction.
I am still in Ford (F) and have a 13.68 stop loss on the short. Shares closed yesterday at 11.96, so I still have some wiggle room. Here’s to hoping F works out better for a lizard.
Devour your prey raptors!