Almost identical setup and reasons we sold Baidu (BIDU) Friday - except unlike Baidu we benefited greatly the entire year from the huge run by Brazilian home builder Gafisa (GFA) in 2009. Much like BIDU would be setting up for greater downside if the "double bottom" at $395 broke, the exact same comment for Gafisa at $30.
At this point I will be more interested in Gafisa over $33, rather than down here.
We are exiting Gafisa completely after holding since March 30th (when the stock was purchased under $10!), in various weightings; only a (less than) 0.1% position was remaining. We were stopped out of most of the position December 15th at $32.30s.
We've owned this name every year of the blog, and I expect to own it every year for the next decade. But for now hasta la vista...
As Ahnold says... we'll be back.
[Oct 21, 2009: IBD - Gafisa: What Housing Slump? Homebuilders Ride Brazilian's Resilient Economy]
[Sep 18, 2009: Brazil's Lula Has Good Chance to Build 1M Low Income Homes by 2011]
[Sep 15, 2009: Gafisa Denies Any Plans to Issue Shares in 2009, but Interested in Debt Offerings]
[Sep 2, 2009: Gafisa Downgraded on Potential Share Offering]
[Mar 30, 2009: Restarting Gafisa as Sam Zell Increases Stake]
[Oct 22, 2008: Sam Zell Increases Stake to Gafisa to 18.7%]
[Nov 19, 2007: Initiated a Position in Gafisa - Brazilian Homebuilder]
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