Markets did a direct U-turn from pre-market...very interesting. AMZN is bleeding again and there's no showing of support. I think it's good now for at least a few more points in the next week or so if things remain what they are. I love the site and use it often. But their margins suck ass and they're pretty much overpriced by at least 50%...this isn't 1999.
RSH and CC, how they stay in business is beyond me, I have been to RSH many times in the past and everytime I go there the help is just pathetic. The stores are always empty. Best thing for them would be to sell out to Best Buy and close all retail outlets and place them within best buy retails stores. CC doesnt look like it can go another 5 years. If best buy is hurting CC is hurting even more.
CC did decent revs, but they net losses were greater than expected. I don't care enough to read their filings, but I would guess they must be cutting margins and giving stuff away to boost revs and lose more money. And Radioshack can close stores all they want, that's not accreditive to revenues, only margins. It's a dying business in my opinion. Their only leverage is that they can fit in smaller spaces than BB. I don't think BB will buy them out...BB could build up the same business probably on their own for cheaper and just knock RS out of business. I'd rather see some good old fashioned corporate death!
And adding repeatedly to my (now)massive Put position in RSH is paying off nicely. That stock is due for the $20s! Booya.
Well...we'll see if we close in this range or if it rallies back in...but I thing this little piggy is finally broken!
I was expecting the three sisters to be reacting with a little more volatility. I thought Circuity City would announce something horrible, which, arguably, they did. They missed analysts estimates by a penny and withdrew guidance. Surely there should have been a nice waterfall selloff into the 13s. I guess CC is opting for the slow bleed. RSH I was expecting a nice slow bleed into the 20s. Something is propping up BRLC. Im a patient man and will wait for my target price.
I think we might get our shot in the next few weeks. My calculations place the VIX north of 23 in the next 30 days. The three sisters will sell off during that time because of margin calls. That will be the time. RSH is going to take the longest to shake out, but somehow I believe CC and BRLC will be a might quicker to the downside target. Tweeter is still fresh in everyone's minds Wow TWTR now selling for 13 cents. Now seems like a great time for consolidation. There is a chance that CC could get bought out or even merge with Best Buy. There was a rumour about RSH to be bought by Dell, but I dont think it will go down like that. Someone will have to merge or get bought or go the way of Twtr.
Dell isn't that stupid I don't think. Would be a horrific move. Would be like the reigning Prom Queen dating a homeless guy.
CC is hanging in there showing some surprising strength. BRLC is wondering down and testing the 4s. It will get below 5, Im confident. RSH is slowly bleeding further down. My conclusion right now is that BRLC will soon breakdown. CC is going to be stubborn and RSH will undergo the slow bleed.
RSH looks broken finally. Broke below it's channel recently and with a wild swing the last few days and the selloff today, it might be toast. I'm looking for a race to $30 as larger retailers are showing weakness means RSH probably took a bigger shit than most are probably expecting. Anyone else following it? I have a shitload, 250 October $30 Puts at this point and some July and October $35s.