ZenKinG
ZenKinG
Joined: May 3, 2016
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June 2nd, 2017 at 11:20:34 PM permalink
Retail has been unfairly beaten down mainly due to ecommerce competition and online stores such as Amazon and this has caused some stocks to be way oversold in the retail sector. Check out ASNA. Shorts are running this into the ground mainly harping on the 1.5 billion in long term debt from one of their recent acquisitions as well as recent guidance from their CEO that sales will be declining around 7% for the year. With such a negative sentiment surrounding retail at the moment coupled with the above two things about ASNA, the price has gotten to unbelievably and unjust undervalued levels due to fear and uncertainty scaring investors.

In my opinion all of this has been way overdone. ASNA brought in close to 7 billion in revenue last year with gross profit at nearly 4 billion and operating cash flows have increased every year for the past 5 years. They also have hundreds of millions in free cash flow to steadily pay off their remaining 1.5 billion in debt until 2022. Even if sales were to decline 7% for the next 5 years(conservative estimate) you're still looking at a stock that is grossly undervalued. What these shorts and pessimists around the stock don't understand is although the CEO cut guidance in sales numbers, he also mentioned cutting capital expenditures and saving around 250-300 million a year compared to the previous 100-150 million. If you start getting into the valuation metrics as well, this stock has a book value of over $9.00, which probably will come down a bit after a couple more quarters of declining sales, but nonetheless will still be a lot higher than its current price of 1.83. Even when you look at the price/sales and forward P/E they are all vastly undervalued and when compared to their peers, all much lower.

My plan and recommendation is to wait for the earnings report to come out next week with reduced numbers and let people walk it down a bit more, let it consolidate and start buying this grossly undervalued stock on the cheap. Brick and mortar stores will always have a place in society. People will eventually get sick of ordering clothes online that don't fit and start filling up the department stores once again. I think these retail executives just need to make some adjustments and get some online promotions going on to get their sales back on track because millennials love everything online these days and the trajectory does seem to be heading online.
Last edited by: ZenKinG on Jun 2, 2017
Wong Halves Full Indices ------------ LoneWoLF
MaxPen
MaxPen
Joined: Feb 4, 2015
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June 2nd, 2017 at 11:28:10 PM permalink
A lot of implied volatility priced into the options. Usually an indicator of expected big moves. Good luck.
AxelWolf
AxelWolf
Joined: Oct 10, 2012
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June 2nd, 2017 at 11:40:09 PM permalink
Quote: MaxPen

A lot of implied volatility priced into the options. Usually an indicator of expected big moves. Good luck.

About 1 year later silver $ 17.62.

♪♪Now you swear and kick and beg us That you're not a gamblin' man Then you find you're back in Vegas With a handle in your hand♪♪ Your black cards can make you money So you hide them when you're able In the land of casinos and money You must put them on the table♪♪ You go back Jack do it again roulette wheels turinin' 'round and 'round♪♪ You go back Jack do it again♪♪
MaxPen
MaxPen
Joined: Feb 4, 2015
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Thanks for this post from:
RogerKint
June 2nd, 2017 at 11:45:22 PM permalink
Quote: AxelWolf

About 1 year later silver $ 17.62.



Your problem is you are trying to measure insurance in dollars. Good luck with that. I've been clear on my stance regarding silver from the beginning. It is however, the most under valued and oversold commodity in the world right now. You can't fight the owners of the press.
Last edited by: MaxPen on Jun 3, 2017
RogerKint
RogerKint
Joined: Dec 5, 2011
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Thanks for this post from:
onenickelmiracle
June 3rd, 2017 at 12:00:43 AM permalink
Quote: MaxPen

Your problem is you are trying to measure insurance in dollars. Good luck with that. I've been clear on my stance regarding silver from the beginning. It is however, the most under valued and oversold commodity in the world right now. You can't find the owners of the press.



"Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants but debt (USD) is the money of slaves." Norm Franz
AxelWolf
AxelWolf
Joined: Oct 10, 2012
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June 3rd, 2017 at 12:03:21 AM permalink
Quote: MaxPen

Your problem is you are trying to measure insurance in dollars. Good luck with that. I've been clear on my stance regarding silver from the beginning. It is however, the most under valued and oversold commodity in the world right now. You can't find the owners of the press.

Good luck explaining to your wife why she can't take anything but silver to your bunker. If it comes down to that, I think guns, ammo, gas medicine, water, and food will be my top priorities. If someone came to me with silver to trade, I would laugh or shoot at them.


Just messing with ya, it's good to diversify.
♪♪Now you swear and kick and beg us That you're not a gamblin' man Then you find you're back in Vegas With a handle in your hand♪♪ Your black cards can make you money So you hide them when you're able In the land of casinos and money You must put them on the table♪♪ You go back Jack do it again roulette wheels turinin' 'round and 'round♪♪ You go back Jack do it again♪♪
RogerKint
RogerKint
Joined: Dec 5, 2011
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June 3rd, 2017 at 12:08:09 AM permalink
Quote: AxelWolf

Good luck explaining to your wife why she can't take anything but silver to your bunker. If it comes down to that, I think guns, ammo, gas medicine, water, and food will be my top priorities. If someone came to me with silver to trade, I would laugh or shoot at them.


Just messing with ya, it's good to diversify.



Lighters! And lots and lots of booze.
AxelWolf
AxelWolf
Joined: Oct 10, 2012
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June 3rd, 2017 at 12:17:01 AM permalink
Quote: RogerKint

Lighters! And lots and lots of booze.

I keep telling you, you can't smoke booze.
♪♪Now you swear and kick and beg us That you're not a gamblin' man Then you find you're back in Vegas With a handle in your hand♪♪ Your black cards can make you money So you hide them when you're able In the land of casinos and money You must put them on the table♪♪ You go back Jack do it again roulette wheels turinin' 'round and 'round♪♪ You go back Jack do it again♪♪
RogerKint
RogerKint
Joined: Dec 5, 2011
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June 3rd, 2017 at 12:38:12 AM permalink
Quote: AxelWolf

I keep telling you, you can't smoke booze.



The hell I can't! Explosion.jpg

Sorry for dooking on yer thread zk. With all your algorithms and fancy numbers, and such yer for sure gonna AP the dickens out of the markets. Just be careful, I heard it's rigged.
MaxPen
MaxPen
Joined: Feb 4, 2015
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June 3rd, 2017 at 12:59:12 AM permalink
Quote: AxelWolf

Good luck explaining to your wife why she can't take anything but silver to your bunker. If it comes down to that, I think guns, ammo, gas medicine, water, and food will be my top priorities. If someone came to me with silver to trade, I would laugh or shoot at them.


Just messing with ya, it's good to diversify.



Would you like to sell your silver?😋

Guns and ammo covered. Enough for a fire team. Did you not know that?

My list of barterable items comes from observations of Argentina and Bosnia. Long shelf life Foods, water filtration devices, solar devices, medicines, toiletries, tools, and trade skills. Once you have that all covered metal is the store of wealth.

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