I had been thinking of overweight Wal Mart and Target and Costco, short mid-priced retailers, and maybe slightly overweight on the high end on the theory that those guys spending patterns are relatively immune to cyclical stuff, but the stock might be unfairly punished (of course timing is key there: come in after punishment, not before). However I don’t feel I know enough about the sector to play with real money. Any one else know whether this is a sensible strategy at this point?
its not an oddball one, but i am loving NUE right now…
TRLG released big profits after the bell today, the stock was up 2.5% during trading today and rose more than 5% in after hours. This is interesting. i know true religion brand, since my fiancee swears by them, but I didn’t know that they were public. I definitely don’t think premium denim is a fad. Definitely have to look more into the fundamentals but the stock looks interesting even after the rise.
If premium denim is a fad, it is likely a long-lasting fad. However, what constitutes “premium” is likely to change from year to year.
Buddha, congrats on your True Religion stock. I’m not a professional. I passed the CFA tests and trade my own portfolio. I know some young hipsters who collect denim. Maybe it’s not a fad (like expensive yoga-wear).
like any 20 something guy, I just want to weigh less than my jeans cost. Today this is a losing battle. (stolen from Aaron Karo).
I’m estatic over TRLG, got in at $16.5 and really thought it would take all of 2008 for their “store expansion depsite tough enviornment” story to play out. Still feel this might have a couple of dollars left in the tank since this quarter was dragged down by store opening costs, but likely profit taking in near term, due to work I can’t sell for another 2 weeks anyways. But still excited, unrealized gains so far equate to roughly 30 pairs of their Super Ts (for those who don’t own, that is their top end).
CBF Reasons: 1. Price $4.2, Book value >$13, No liquidity issue 2. Dividend at $0.15/quarter 3. Insiders bought a lot above $10 4. Rejected ABR’s Offer of $8/Share 5. Recently hired Goldman to shop itself around 6. Updated Golden Parachute for management this week 7. Market cap below $150M, below the radar screen of people who understand it I think it may be bought within 3 months.
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