Not sure about $6 but RIG will be in single digits soon. RIG underperformed even when oil was $100. There is no reason to go long here. Coal, steel, copper and iron stocks are doing even worse. There will be plenty of bankruptcies before this is over.
Maybe but I have traded MU several times in the last six months and always made money. Buy at $30 and sell at $35, rinse and repeat. Bought again yesterday and hope to hold for a breakout this time. Long consolidation followed by a breakout to new highs. Only time will tell if I am right.
Sentiment: Strong Buy
I don't think COH is overvalued here but I just don't see things improving for them in the near term. I think the market is way too optimistic about lower gas prices. Retail is still a tough place to make money. and COH has underperformed the market for years.
CLF has a lot of company. Look at WLT, BTU,FCX, X etc., they have all been slaughtered and it isn't over yet. Coal and iron ore will see a lot of bankruptcies before it's over. WLT should be any day now.
I bought at $33 and sold this morning. I wasn't that impressed with the results. They still have declining same store sales in North America and the stronger dollar will be a headwind. Maybe a turn around for 2016 but not this year. KATE and KORS are still a big problem for COH too.
That's what everyone said when WLT was $6. It is now trading at 0.85. This is a secular decline and it isn't over. Steel was the first commodity to roll over in 2010 and even after a couple of great short covering rallies the stocks are back in a bear market. CLF could still go a lot lower.
You have to love a short covering after hours rally. A big over reaction to an irrelevant retailer. With that being said, I bought at $6 a few weeks ago and I am out after hours at $7.90. Good luck to anyone going long here, you are going to need it.
SDRL did the right thing and RIG will unfortunately continue to fall until they cut or eliminate the dividend. Look at HAL, it doubled last year while the drillers dropped. Never made any sense to me. Getting killed now though. Icahn did shareholders and injustice by demanding such an unsustainable dividend.
Flat comps and going into what will be a very competitive Christmas season. Longs better pray $7 holds. Downgrades coming tomorrow. This just isn't good enough.
I will be interested in what they have to say too. Retail in general along with autos and housing have done poorly for over a year. I do see COH as a turn around story but it might take several more quarters for that to happen. This market is so far over it's skis it's amazing and while no one is looking the dollar is about to break out to multi year highs. That won't be good for earnings or for multi national companies. But Japan threw more gas on the fire and that is all that seems to matter for now.
The retail sector topped out late last year, along with housing too. All signs the fed money pumping has run out of gas. The drop in commodities has been relentless though. All signs point to deflation and the fed knows it. The oil sector looks a lot better than coal at this point and oil is not down that much. I like RIG here.
The strong dollar not only hurts commodities it will also hurt multinational companies too. Why is that not being talked about. Commodities and retailers have been crushed, now is the time to buy both. If this rally is going to continue there has to be a shift to value. The valuations on the momentum stocks are absurd. I own both FB and TWTR and I would not buy either at this point. Buying Rig here.
Don't hate it at all just don't see it as a viable turnaround like I do Coach. I trade it, that's all. I bought at $9 last week and sold it after hours today at $10.50. I still think it will go back to $9.
Borrowed money and the jcp near me looks exactly the same as it did years ago except for the addition of Sephora. Comps where easy this year, that won't be the case nest year and jcp will have problems all over again. Shorts have made a ton of money on the fall from $80. I wouldn't feel too sorry for them.
I wouldn't buy Macy's either at this point. I bought a lot of Coach recently and I plan on holding it long term. JCP just has too many long term problems to recover in my opinion. Too much debt and Mike Ullman, while capable is not the guy to lead them out of their troubles. Doing the same old thing in business just doesn't cut it. Amazon and Costco have changed retail for good and the big box retailers and department stores are going to have a tough time going forward. JCP, SHLD and BBY certainly come to mind an none have done well in the past 5 years. That isn't going to change.
What longs don't get is, this not a long term turnaround. I love to trade it and have bought just before the last 3 earnings releases. Easy money and I am out after hours already. next year comps will get much tougher for JCP and they don't have the cash to sustain or improve their business. Stores are clean and neat but boring. Not the stuff turnaround's are made of.
They fired Ron Johnson 5 months ago and have plenty of time to find a new CEO. Ullman looked, pretty foolish yesterday and I would think he will be gone pretty quickly. Bad news is out, everyone hates JCP, now bring in a new CEO with retail experience. I think JCP will turn it around but if they don't replace the CEO and chairman quickly, they are toast. Throw out some off the board members too, what a bunch of clowns. Volume and selling pressure was amazing the last few days, reminded me of 2009.
Agreed, but the management at JCP has botched everything with their lousy communcation skills. They have had 5 months to find a new CEO, Ullman isn't going to be the guy that turns things around. I look at BBY and I am amazed at the turn around in the stock which is not warranted in my opinion. Two 100 million share days back to back is captiulation in my book.
Sentiment: Strong Buy