Wall-Mart and HD

H

hajimow

Their results were not good. Wall-Mart says our customers are squeezed. As I said, now is the time to short big ticket item retail stocks. I believe CC and BBY will be affected a lot. I am betting on CC that will tank soon.
 
I don't disagree with your thesis but wonder how much on the downside you see in CC given they have ~2$ in cash ?

A buyout isn't likely given todays credit situation, but with their cash position nothing can be ruled out ... a private equity firm could come in and close their losing stores.

Remember what Carlos Slim did with Comp-USA some years ago ... a guy like that doesn't need credit.
 
Quote from Whistlingleaf:

I don't disagree with your thesis but wonder how much on the downside you see in CC given they have ~2$ in cash ?

A buyout isn't likely given todays credit situation, but with their cash position nothing can be ruled out ... a private equity firm could come in and close their losing stores.

Remember what Carlos Slim did with Comp-USA some years ago ... a guy like that doesn't need credit.
More...

I read that the purchase of Comp-USA was not successful. When things are not good, stores like CC and BBY can bleed bad. I expect to see CC below 9 in a month. Remember CC hit 52 weeks low of 10.47 just 3 days ago. Recent run-up is a good opportunity to short more. I believe the last two days' price action was because of some short coverings and some short term tradings to catch small bounces. Long term trend is down.
 
You must log in or register to reply here.
Back
Top