What could be a worst investment in the current climate -- a leveraged, highly discretionary retailer, catering to middle market consumers who can barely pay their mortgages, rents, student loans, ever higher gas, grocery, utility, cable, cell phone bills?
A diamond necklace from Zales is just not on anyone's list of priorities, and probably won't be for years to come. Mall traffic is dying, too, as a result of the same macro factors (plus more and more people are buying everything online, and skipping the mall trip). Flu outbreaks this winter won't help, either (I know many people who are afraid to go into malls now for fear of getting flu).
The bullish case is all but impossible to make, which takes this stock back down to previous levels, sub-3. It's almost in half from where it was just a month or so ago.. The dream is over.