On Wednesday, I covered what makes these markets look safer than they really are.
They’re being lead ever-higher by behemoth leadership stocks while the VIX plumbs ever-lower lows. Investors are doing very little hedging. Some of the bricks-and-mortar retail companies we’ve targeted are getting an extension put on their death sentence as they’re being lifted with the rising tide.
But that doesn’t mean that these companies are suddenly better. And it doesn’t mean that the positions you are already in that are preparing for their demise are now worthless.
For months, I’ve been telling you that the markets are headed higher.
A side effect is that they would likely take some of our targeted bricks-and-mortar retail losers higher as well, making those crappy stocks appear ripe for a real turnaround.
That’s exactly what we’ve seen – an across-the-board rally that’s inflating the stocks we know are headed south.
Today, I want to take a deep dive into the market rally, tell you why some crappy retail stocks are going along for the ride, and show you why they will not continue to rise with the rest of the markets.
Everyone wants to find that one stock they can get rich and retire on. It’s the dream, and it’s fun to fantasize about.
However, the reality is that you’re as likely to find “the one” as you are the Holy Grail.
That doesn’t mean you shouldn’t try. You absolutely should… Just not in the way you probably think.
Not only is it fun trying to find “the one” stock that’s going to make you rich, it can also be very fruitful.
Chances are you’re not going to find “the one,” but that shouldn’t stop you from building a portfolio of wannabes. Your millionaire-maker might be in there, but even if it isn’t, you can still hit it out of the park with a solid portfolio of ten or twenty winners.
While it’s obviously important to have winners in your portfolio, what’s talked about far less is how to avoid losers.
If you can avoid dead weight, your chances of building a monster portfolio are far greater than you ever imagined.
Here’s one stock you’ll never hit a home run with, and how to keep any other losers out of your portfolio…
Michael Kors Holdings Ltd. (NYSE:KORS) is buying high-end shoe retailer Jimmy Choo for $1.17 billion.
On the surface, it looks like a smart acquisition to add the high-profile, high-heeled fashion darling to the Kors stable of upscale offerings.
But there’s a lot more to it.
The acquisition is a huge gamble on a new old strategy that Kors initially succeeded in executing… then royally screwed up.
Based on what Kors’ management said about their plans for Jimmy Choo (and their own uphill battle in the retail Ice Age), any wrong moves now could sink Kors stock and any hope of reclaiming the high ground and fat profit margins the brand once commanded.
Blue Apron Holdings Inc.’s (NYSE:APRN) days, despite first debuting on the NYSE as recently as June 28th, may be numbered.
Amid rumors of the company having to go public to raise desperately-needed cash, they made their debut exactly when tech stocks were tumbling. As if that wasn’t hard enough, they also collided with the announcement that Amazon.Com Inc. (NASDAQ:AMZN) was buying Whole Foods, knocking the company’s pre-IPO valuation down from $3.2 billion to $1.9 billion.
Since the stock began trading in the open market, it’s down a whopping 36%.
A big chunk of that loss came this week, some might say out of left field.
Left field is, of course, where Amazon lurks before pouncing onto center stage and upending whatever game everyone’s playing. The business that Blue Apron thought it controlled got punched in the gut by what Amazon just did.
Here’s what it means for Blue Apron, and how to profit from their almost inevitable end…
Blue Apron Holdings Inc. (NYSE:APRN), the meal kit delivery company named for the uniform that apprentice chefs wear in France, is seeing red, as in huge losses.
But it gets worse. Blue Apron’s stock, which just debuted on June 28th, is losing ground even faster than the company’s losing subscribers.
Initially founded in 2012, Blue Apron’s business model of delivering prepackaged ingredients and recipes to subscribers’ doorsteps for them to prepare at home, sounded sexy.
The theory was sound. Talk of how the smart business model would disrupt traditional grocery shopping and pose a new challenge to restaurant businesses drew a lot of attention and garnered the young Blue Apron some neat headlines.
But there are headlines, and then there’s the story.