Author Topic: Anybody else looking at bombed out retail sector?  (Read 16682 times)

DTEJD1997

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Anybody else looking at bombed out retail sector?
« on: April 04, 2017, 11:37:55 AM »
Hey all:

Anybody else looking at the bombed out retail sector?

Obviously the industry is going through hard times, and there are going to be plenty of losers...but they can't all be losers?  Can they?

Some well known big companies are selling for single digit P/E's and yields of 5%+

I think some of them also have good balance sheets...

I am looking around, but have not yet pulled the trigger.  Anybody else looking?  Thoughts?


TwoCitiesCapital

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Re: Anybody else looking at bombed out retail sector?
« Reply #1 on: April 04, 2017, 11:57:46 AM »
Hey all:

Anybody else looking at the bombed out retail sector?

Obviously the industry is going through hard times, and there are going to be plenty of losers...but they can't all be losers?  Can they?

Some well known big companies are selling for single digit P/E's and yields of 5%+

I think some of them also have good balance sheets...

I am looking around, but have not yet pulled the trigger.  Anybody else looking?  Thoughts?

I've been watching it. Bought a token position today in LB and looking to start a position in UA. Got my eyes on a few others too, but also waiting.

50centdollars

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Re: Anybody else looking at bombed out retail sector?
« Reply #2 on: April 04, 2017, 12:00:21 PM »
I am looking at Nordstorm. I think they are a survivor.
50centdollars

writser

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Re: Anybody else looking at bombed out retail sector?
« Reply #3 on: April 04, 2017, 12:05:34 PM »
DDS looks somewhat interesting. Owns lots of real estate, bought back 50% of shares the past six years, trades at low multiples.
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.

GregS

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Re: Anybody else looking at bombed out retail sector?
« Reply #4 on: April 04, 2017, 12:21:43 PM »
I've been watching DSW for some time.  Inventory growth has outpaced revenue growth since 2014, but appears to be coming in line, so maybe gross margin will stabilize.  Still opening new stores but that's slowing down too.  Zero long term debt.

However, I'm increasingly concerned online shoe shopping is improving, and DSW's purchase of Ebuys looks very defensive to me. 

rb

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Re: Anybody else looking at bombed out retail sector?
« Reply #5 on: April 04, 2017, 12:26:22 PM »
I've been keeping an eye on it as well.

LB looks interesting to me. Maybe UA and URBN.

Note that not everything retail has been bombed. WMT is hanging in and TJX seems to be unaffected as well.

GregS

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Re: Anybody else looking at bombed out retail sector?
« Reply #6 on: April 04, 2017, 01:06:01 PM »
Hey all:

Anybody else looking at the bombed out retail sector?

Obviously the industry is going through hard times, and there are going to be plenty of losers...but they can't all be losers?  Can they?

Some well known big companies are selling for single digit P/E's and yields of 5%+

I think some of them also have good balance sheets...

I am looking around, but have not yet pulled the trigger.  Anybody else looking?  Thoughts?

Care to share any tickers?

Other than DSW, LB and TGT are interesting to me right now.

rkbabang

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Re: Anybody else looking at bombed out retail sector?
« Reply #7 on: April 04, 2017, 01:09:55 PM »
I've been watching almost all of the tickers listed above as well as: TSE: HBC

I haven't bought anything yet.

TwoCitiesCapital

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Re: Anybody else looking at bombed out retail sector?
« Reply #8 on: April 04, 2017, 01:45:56 PM »
Just to clarify why I have purchased LB and nothing else so far: it's two fold.

1) Therapeutic to make up for missing it in 2008/2009 and
2) There appears to be long-term resistance at $40 which may help it from going too much lower in the short-term to medium-term.

If it went below $40 with brand still intact, I would probably consider making it a much larger position.

clutch

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Re: Anybody else looking at bombed out retail sector?
« Reply #9 on: April 04, 2017, 02:00:32 PM »
Perhaps one of the owners of LB shares could start an investment idea thread?