The low hanging short fruit seems to be gone. Last time it was this low was Jan 2015. Or maybe not. They sure have a lot of locations. Not sure how much biz Walmart is taking. I like the stores. They're nice. But overhead kills. If they get a nice pop on earnings(9/9 before bell), they'll be a good short at that point. Somehow I don't think that'll be the case though.
Obviously, numbers won't be good and insiders are dumping their stocks like hell ! Bear bear bear. Back to 27 at least. CM
Cramer says that they will probably buy the overlapping pharmacies in the Walgreens/Rite-Aid deal. Obviously, they are already in the pharmacy biz, but to an extent this is deworsification.... IMO. Unless they are getting them at a real real cheap price. How much will the remodeling and branding costs be? And if these stores were making money, why the merger anyway? Oh I forgot... synergies. Scale. Right. Ivy League MBA's doin' their thing I guess. Dumb.
Interesting, thx. But I don't trade fundamentals. I trade graph & price action. IMO, downtrend until 27.40 dollars (2015' lows). Wait to see if it holds. Super bear below 27. CM
Chris... I have a question. I can understand trading your method when the seas are calm so to speak,.... ie between earnings reports, no news etc.... but don't you think that over an ER trading TA is risky? Anything can happen right?
If we lived in a perfect world, numbers would be known by everyone at the same time. Insiders would follow the rules, and anything could happen. Reality is that insiders and friends, hackers, HFT firms got numbers days, minutes or even seconds before everyone and what are they doing ? They abuse the majority and buy / sell before ER. So you better be with them rather than with the majority. TA and price action show what insiders / big hands are doing or trying to do secretly: accumulation ? distribution ? Fake movements and manipulations? Real intentions? Remember, the tape tells all. Price and volume don't cheat and just reflect confidence / fear about a company, a sector at any moment. That is why I like to follow small / micro caps. Less cheaters, manipulators to try to abuse you. Generally I don't know what these companies are doing / producing and I don't care. Price action tells you to enter / exit without guessing about business / prospect / future. On the other hand, if you trade companies you know, you may not stay neutral, you got tons of "feelings", "rumors", "news" and this is not the good way to make money. Again, I recommend to everyone who wants to make money to read, reread and analyze "Secrets for profiting in bull and bear markets". Still true after 30 years. CM