NEW BEARISH Plays

MACERICH Co. - MAC - close: 38.92 change: -0.71 stop: 41.51

Company Description:
Macerich is a fully integrated self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. The Company is the sole general partner and owns an 89% ownership interest in The Macerich Partnership, L.P. Macerich now owns approximately 75 million square feet of gross leaseable area consisting primarily of interests in 72 regional malls. (source: company press release or website)

Why We Like It:
The rally in MAC has stalled. The whole REIT sector looks like shares are ready to correct. All we want to do is capture part of the correction. The recent high was $41.34 on March 17th and MAC has been struggling ever since. I am suggesting bearish positions now. Our target is the $35.15 level. Keep in mind the 50-dma nearing $35.00 could offer some technical support. I do consider this somewhat aggressive. The most recent data listed short interest at 10% of the float, which is above average and raises our risk of a short squeeze. Plus, the Point & Figure chart is still bullish. I would keep positions small.

Suggested Position: SHORT MAC stock at $38.92(?)

Annotated chart:

Entry on March 31 at $38.92(?)
Earnings Date 05/04/10 (unconfirmed)
Average Daily Volume: 1.6 million
Listed on March 30th, 2010