I am recommending the sell of the retailing sector. Why? The reason is simple, no one is buying anything right now. When was the last time you heard of a friend, neighbor, or colleague bought a new car? I tell you that it is obvious all over America (if not the world) put discretionary spending on perma hold a couple of weeks ago. You can rest assured that there isn't a retailer in America (even Walmart) that will have a great quarter.
Ever since Bush went on prime time consequences..... the retail market has come to a screeching halt that is only slightly less frozen than the cr
Why we like Limited Brands Inc. toilets and all If you know nothing about Limited Brands, Inc. ( LTD ) then know this - they make some wonderful catalogs. Limited consists of Victoria’s Secret , Bath & Body Works, and the Limited and Express retail stores. I bet this Victoria's Secret ad got your attention , so should their company stock. Last month Limited report ed their 2006 revenue at a staggering $10.6B with a lovely profit of $677M (net income). How's that for bringing sexy back? LTD also pays a 2.3% dividend yield and the shares are trading near their 52-week low.
With the end of the shopping season, many retailers have reaped the benefits of a profitable 4th quarter (note AEOS, ARO, etc.). While same store sales for LTD were up 4% for December, it was below the 9% that analysts were expecting, which pushed the stock downwards after hitting a 52 week high.
Another retail play, similar to my PETM pick, that appears less cyclical than other retail plays especially this fall/winter that has been warmer than average. VictoriaS looks like a winner at expanding its consumer base to younger ages while still being a destination of choice for active women. Marketing is $ but is paying off. The stinger with LTD, aside from niche pockets of growth w/ VS is Bath & Body Works. Store visits show buzzing activity, long (quick) lines, strong customer flow, building brand (store) loyalty by coupons and giveaways. Expect (further) breakout to upside with LTD ...
Looking for the bottom?....Keep looking.
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SELL THIS RALLY
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