Put Some More Lipstick on These Pigs

It ain’t just Lehman, Fannie and Freddie: There are plenty of other Pigs in the sea.

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Washington Mutual (WM)

wamu_ugly

We are long this — my trading desk has been trying to bottom tick this today — but I don’t like it as anything other than a trade.

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American International Group (AIG)

aig_is_a_pig

We are short this; See AIG: Don’t Try to Catch the Falling Knife (February 2008) and Bloomberg Video: AIG Earnings (August 2008).

Reuters says AIG’s exposure to Fannie Mae, Freddie Mac preferred shares between $550 mln-$600 mln, according to sources.”

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Merrill Lynch (MER)

bullish_on_america

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The only good news is the dearth of bottom calls for the sector — something that is essential for the actual bottom to occur.

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Long WM, Short AIG, No position in MER.

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UPDATE: Fortune rips off this title!  Putting lipstick on a pig 9/14/08

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