Shorts continue to be bad bet - SSL International position closed

SSL International (SSL) issued a relatively upbeat trading statement this morning. Total reported sales for the period are expected to be in the region of GBP795 million over 22% up on the same period last year. This increase includes the impact of the acquisitions in Russia and Ukraine of Beleggingsmaatschappij Lemore BV, which was consolidated from 1st June 2009, and Gainbridge Investments (Cyprus) Ltd, which was consolidated from 1st October 2009. Both acquisitions continue to perform well and sales consolidated in this year are expected to be in the region of GBP120 million. Excluding the impact of acquisitions, SSL's branded consumer sales are expected to be approximately GBP630 million. After adjusting for favourable foreign currency movements, this represents underlying growth of around 4%, driven by both Durex and Scholl. Chief Executive, Garry Watts said ""Our geographic footprint has been significantly expanded by our acquisitions of the Russian and Ukrainian businesses. Good sales growth and an ongoing focus on cost control enable us both to invest in the business and expand margins. Our balance sheet remains strong and we continue to be confident in our 50% EPS growth target over the three years to March 2012." 

A short position initiated at 782p was closed this morning at 800p. Swimming against the tide on SSL with the overall strength of the market proved to be a losing trade. My other short, ARM holdings has also performed poorly with the rise in the U.S. market over the last week continuing unabated.