An update on two short positions: GameStop Corp. (NYSE: GME), recommended on May 26, 2009 at a price of $26.00, and Telefonica S.A. (NYSE: TEF), recommended on the same day at a price of $61.11.GameStop: Hold Short. It's still hard to make the case for growth in high-end / sophisticated games amid a slowdown in consumer spending. The era of the 'frugal consumer' is upon us: basic games are in, pricey games are out. Cover Short on a bounce off $20, $17, $15, or $10. Buy/Stop Loss if you sold shares in this company: $33.
Telefonica: Stopped Out. They don't all work out. In May, TEF looked like a bear hug, a bearish stock pattern, but it broke out of that pattern decisively, and stopped out the position at $73 for a $13 loss. The expected economic recovery has improved the outlook for TEF's telecommuncations operations in Latin America, especially in Brazil, Argentina, Mexico, and Chile.
Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
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