Somebody once said, when they're all screaming, buy!, buy!, buy!, you might wanna sell. Because they've all bought, hence there is nobody left to buy. When there is nobody left to buy and drive the stock higher, it goes down.
<<<Somebody once said, when they're all screaming, buy!, buy!, buy!, you might wanna sell. Because they've all bought, hence there is nobody left to buy. When there is nobody left to buy and drive the stock higher, it goes down>>>
You could also say WAG has been "sold" by many for 5 years now. Earnings have consistently gone up even in a piss poor economy. WAG is near it's average P/E low, far below it's former high P/E of around 60. P/E was around 60, stock was aroung $45 three years ago. Based on P/E or revenues, this stock has essentially been cut in half over the last four years. Since everyone says "Sell, sell, sell!" maybe it's time to buy depending in your time horizon.
You have the right idea but you're about 4 years too late!
Maybe not this very day, but now may be the time to buy buy buy. Again, it depends on your time horizon. Best of luck CD
1st, don't let my ramblings rattle you. I'm just a disgrunteled pizza delivery guy.
<Since everyone says "Sell, sell, sell!" maybe it's time to buy depending in your time horizon.>
Thats just it, all are currently saying buy buy buy. I haven't heard anybody saying sell sell sell. I'm not even saying that. WAG has a lot of shares, if you consider many old timers selling out and taking decades of profit, it could take a long time to consolidate all those shares. If you went back to when WAG had 1000 stores. WAG growing to 4000 stores would be 300% so a high PE might have been justified then. Today WAG may approx. double it's stores, thats only 100% growth over the next 6 years. Now you have to consider where the growth will be after that. Investors aren't willing to pay a lot if they can't see future growth. Lets say it's 2010, WAG has 10,000 stores. The stock is at $60. With a PE of 25. If they can continue to grow at 500 stores per year, thats only 5% store growth. How eager would you be to buy at that time? You gotta have somebody who is willing to pay you more than you paid for the stock, in order to profit.
I would almost agree with the negative sentiment. WAG seem to always pull back after a one or two day big move up. Don't get me wrong, I'm bullish. At some point, it will start to pull back less and move up higher, pull back less, etc