Monday, June 8, 2009

Do Not Buy Retailers, Part 2

Zachs.com published an article at Seeking Alpha discussing overall weakness in the retail sector.

Zachs calls out Abercrombie (ANF) and Target (TGT) by name for having weak comparable-store sales figures - ANF's dropped 28% vs. year ago numbers, while Target's fell 6%. They also pointed out that Wal-mart (WMT) elected to NOT report comps for the first time in 30 years. That doesn't necessarily mean trouble for WMT, but it's an indication of the immense pressure of retailers to maintain sales, beat Wall Street estimates, or suffer the consequences.

Read the full article here at Seeking Alpha.

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Do Not Buy Retailers

Zachstocks recently posted a piece on the numerous opportunities for initiating short positions in the consumer discretionary/retail sector.

The author discussed the macroeconomic factors causing weakness (consumer and economic uncertainty, etc.) and then adds commentary on specific stocks that may be poised to fall. He mentions Tiffany (TIF), Chipotle Mexican Grill (CMG) and Green Mountain Coffee Roasters (GMCR).

Head on over to Zachstocks to read the full article: "Retail Stocks Appear Ready to Fail"


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