BBBY

kmiklas

kmiklas

Those of you in on consumer discretionary should have some underwear changes ready.

imnsho, This is going to get worse before it gets better. I looked at Nordstrom, Macy's and some other retail for correlation and collateral... Bear is charging.

We all know that before COVID hit, shopping in the flesh was going out of style. COVID/Delta is exponentially exacerbating the problem, effectively FORCING everyone to shop online.

They're talking about "supply chain issues" but I think it's a load of horse manure. There's been a structural shift for in-person demand.

Can we bring back the old-growth forests and beautiful oaks they chopped down to build these mega-malls?

bbby.PNG

Thanks to Interactive Brokers TWS for this chart
 
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Looks like they were in doo doo before covi has hit. Low entry bar for new competition as well. (And there's plenty (?))
Price doesn't shine neither.

But, whats your plan ?

P.s
kmiklas said:
This is going to get worse before it gets better.
More...
I think it visited both in the past 18 months.
 
The big move is done. Your hoping on follow thru sentiment. You see how it pinned at 15+? That's strong hands with big mitts.

More likely, it has become a long term value buy. This is where Financial Statements Analysis comes in, if that is your cup of tea.

Compare to Sally Beauty Supply. Maybe , they have yet to come clean with diminished growth expectations. A lot of companies need to come to Jesus.
 
The US is overstored compared to countries in Europe at a rate of 3 to 5 to1 based upon population. That is the reason with the pandemic and higher minimum wage make more stores inefficient to operate. It has resulted in sharp reduction in occupancy rates at malls.
 
xandman said:
The big move is done. Your hoping on follow thru sentiment. You see how it pinned at 15+? That's strong hands with big mitts.

More likely, it has become a long term value buy. This is where Financial Statements Analysis comes in, if that is your cup of tea.

Compare to Sally Beauty Supply. Maybe , they have yet to come clean with diminished growth expectations. A lot of companies need to come to Jesus.
More...
Good points, fully agree that the BBBY move is in the books. I'm thinking of this as a harbinger of doom for related retail, like the Gap, Macy's, Nordstroms, etc. Perhaps an indicator that other retail instruments will see a similar kneecapping.

Like how other Chinese companies are going down because of the Evergrande train wreck. What do they call this on BB? It begins with a "C" collateral damage? Co-(something).
 
More likely he came in early with too much size expecting less volatility. Best to start with a nibble after a giant move. Nobody can predict the intraday volatility to result. Let the technicals get drawn on a time frame first then see if there is a setup you can scale into.

Caveat: This is advice from an unaccomplished intraday trader.
 
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