Thursday, November 02, 2006
Sector Spotlight: Retail
In my opinion, the weaker-than-expected productivity data is terrible news for the bulls. Basically, if corporations are no longer able to squeeze their employees, the next step to increase profits will be job cuts. When corporations start firing people, watch out. The consumer will get poleaxed.
However, considering how "assholish" the dip buyers are, I wouldn't be surprised to see him/her buy on the bad news. Frankly, that's what asshole dip buyers do-- it's their main function.
With my money, I am going to sell to him/her and bulk up on some trading shorts, like BRCM or any struggling retailer.
As for the Retailers:
It really is a tale of two cities. On one end, companies like GES, CTRN and ZUMZ are on fire. On the other, companies like CHS, FRED and WMT have as much foot traffic as a Florida Marlin baseball game.
In short, if the economy slows the Retailers have to do worse-than-expected. Furthermore, with all the hype and overvaluation in the sector, I feel they may be ripe for a good drubbing, or two.
NOTE: MVIS looks damn good today. Earnings or lack of are being reported after today's close.
The following Retail stocks have no mojo:
CHS -8.8%
FRED -6.9%
SHRP -6.6%
GPS -6%
MWRK -4.9%
BONT -4.9%
CROX -3.9%
However, considering how "assholish" the dip buyers are, I wouldn't be surprised to see him/her buy on the bad news. Frankly, that's what asshole dip buyers do-- it's their main function.
With my money, I am going to sell to him/her and bulk up on some trading shorts, like BRCM or any struggling retailer.
As for the Retailers:
It really is a tale of two cities. On one end, companies like GES, CTRN and ZUMZ are on fire. On the other, companies like CHS, FRED and WMT have as much foot traffic as a Florida Marlin baseball game.
In short, if the economy slows the Retailers have to do worse-than-expected. Furthermore, with all the hype and overvaluation in the sector, I feel they may be ripe for a good drubbing, or two.
NOTE: MVIS looks damn good today. Earnings or lack of are being reported after today's close.
The following Retail stocks have no mojo:
CHS -8.8%
FRED -6.9%
SHRP -6.6%
GPS -6%
MWRK -4.9%
BONT -4.9%
CROX -3.9%
Comments:
<< Home
Sold my mvis, nice! Huge move today. I'll probably end up wishing I scaled out.
# posted by 
: 11:08 AM
: 11:08 AM 
Like you said the other day, my research on the company was weak at best (I'm the guy who told you to floss with my ball hair). I'm happy to take down my $5k profit and watch you rake it in.
# posted by : 12:21 PM
: 12:21 PM
in case you've been dazzled and distracted by your MVIS glory, take a glance at short UTSI - they finally cracked with Merrill pointing out they seem to have no clothes... A stock I've long hated (I came out of telecom equip industry, and it's a tougher business than UTSI ever made it seem to be).
Also, WFMI is looking very nervous ahead of earns, but I don't know that I'd short it - be like firing bullets at a tank.
Also, WFMI is looking very nervous ahead of earns, but I don't know that I'd short it - be like firing bullets at a tank.
# posted by : 1:35 PM
: 1:35 PM
I've got a good tune/youtube for you on retail.
http://www.youtube.com/watch?v=izB85LUlygE
http://www.youtube.com/watch?v=izB85LUlygE
# posted by : 2:02 PM
: 2:02 PM
Great call on MVIS. Made $5K so far. Thanks
Please don't start charging us $399/yr for your future blogs...
Post a Comment
Please don't start charging us $399/yr for your future blogs...
# posted by : 2:52 PM
: 2:52 PM << Home
