Thursday, October 15, 2009

Bookkeeping: Covering Remainder of Wynn Resorts (WYNN) Short

Our original entry into the Wynn Resorts (WYNN) short was ill timed, but when the stock rallied tremendously we added some more and pushed our cost basis up to mid $56s. We've been trading around it since, some shorts over $70s - some covers in $60s etc. I am going to exit for now the entire position and look for some new candidates to short since valuation means nothing and people are happy to pay 50, 60, 70x for casinos.

Today's sell off allows us to get out with a loss of 12% on this last piece, although we had some larger % losses on earlier pieces we sold off.

There is still a gap down there in the mid $40s (late July) but we'd need to see the 50 day moving average broken to make any sort of run at that. I would entertain re-entering short on a break of that support level.

No position

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