Thursday, October 22, 2009

Private Equity IPOs Are a Topping Signal

It occurs to me that the private equity IPOs (like Cerberus' firearms portfolio) that took place this summer or that are being planned are another bearish insider indicator.


eh said...

How do you see them as different from, say, the rapid-fire REIT IPOs earlier this year?

CP said...

It's the same concept. The REITs are really overpriced too.

eh said...

OT, but GE has been really weak lately.

eh said...

The REITs are really overpriced too.

Try shortin' 'em -- you'll be pulling your hair out.

CP said...

The #2 trade I am running right now is Short REG, Long REG-E. It is working great.

(You can see the key trades on the right column of the blog.)

Good to see that GE is coming down. As I mentioned before, I have close to a thousand GE put contracts.