I have been looking into some potential shorts to play a couple of developing themes: higher commodity & input costs, European debt issues and weakening low-end US consumers. My goal is to balance out my portfolio beta, which currently is slightly elevated at 1.4. I’m not short in any of these names yet, but keep them on top of my watchlist:
Lumber Liquidators: hardwood floor maker reported weak earnings and is suffering from Lumber prices:
Big Lots: was catching some downgrades after disapointing earnings:
Kellogg: my favorite short candidate. Prices seem ready to break down. Impact from higher corn prices:
Kimberly Clark: reported weak earnings.
Deutsche Bank: proxy for issues in Europe.
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