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NATH - Bought as part of a pairs trade with MRT

06/30/2010 04:06 PM by Dave Pinsen

Shorted Morton's today at $5.22, and went long an equivalent dollar amount of NATH at $15.58. MRT has an Altman Z"-score that predicts bankruptcy, and NATH has one that indicates financial strength. The macro picture favors NATH too: n this economy, there's going to be more demand for downscale burgers and dogs at NATH than for upscale steaks at MRT. NATH also looks better technically too.

Using 18% trailing stops on both ends here.

Rating:
4

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  • 07/19/2010 07:31 PM by Dave Pinsen

    Sold the rest of my NATH shares at $15.82 today, after I was forced to cover MRT due to lack of borrowable shares, closing out this pairs trade.

    Rating:
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  • 07/20/2010 01:35 AM by Dave Pinsen

    Sold the first 20% of NATH at $16.09, so the gain on the long side of this was about 1.9% on average.

    Rating:
    0
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