Wall-Mart and HD

Discussion in 'Stocks' started by hajimow, Aug 14, 2007.

  1. 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.
  2. 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.
  3. hajimow


    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.