Articles About Trading & Investing

SHLD and KSS Are a Perfect Example of This Rally’s Effect

4 | By Shah Gilani

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.

Far from it.

Here’s what the VIX is missing, and how our positions in SHLD and KSS have been affected

The Major Side-Effect of This Rally to Watch Out For

1 | By Shah Gilani

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.

Let’s get started…

Believe It or Not: There’s a Simple Fix to the Student Loan Crisis

20 | By Shah Gilani

Student loan debt is a monster problem.

But it doesn’t have to be, and it shouldn’t be.

There are a host of reasons that have contributed to the current crisis, but here are the main issues:

  • Higher education is too expensive.
  • The government shouldn’t be financing or guaranteeing student loan debt.
  • The ability to pay back loans isn’t 100% income-based.

This may seem like an insurmountable task that we couldn’t possibly see resolved in our lifetimes, but that simply isn’t true.

Here’s the simple solution that fixes the systemic issues in higher education financing…

How Loans Turned American Students Into Indentured Servants

3 | By Shah Gilani

It doesn’t matter if you’re liberal, conservative or libertarian. We all know that the student loan crisis forcing Americans into indentured servitude is wrong.

Student loan debt in the U.S. is at more than $1.4 trillion and counting. That debt…

  • Can’t be paid off without tens of millions of better-paying jobs.
  • Can’t be discharged in bankruptcy.
  • Can’t be stopped from growing because it serves the for-profit universities and the so-called non-profit universities’ egregious profitability.

President Obama addressed America’s massive student loan problem with legislation and an executive order, but nothing really changed.

President Trump is proposing changes to income contingency repayment plans and forgiveness programs in his 2018 budget.

Those proposals would be a help, but they won’t stop students of all ages from remaining or becoming indentured servants to the false hopes and profiteering schemes of greedy universities.

Here’s how it got this bad, and why these fixes are only Band-Aids on a plague…

One More Terrible Company to Keep Far Away From Your Money

3 | By Shah Gilani

On Wednesday, I let you know why your dream-catching portfolio that you’re building should never have APRN in it.

Today, I’m warning about another recently launched wannabe highflier IPO that crashed. Though it may look like a bargain now, it’s just another gambler’s stock and not a portfolio candidate.

I’m talking about Snap Inc. (NYSE:SNAP), parent company of the app Snapchat.

Their earnings report will be released soon, and there’s a chance the stock could see a pop. But if you’re smart, and I know my readers are, you’ll think twice before buying into this fad.

Here’s why SNAP will never be worth a gamble…

How to Keep Loser Stocks Out of Your Home-Run Portfolio

1 | By Shah Gilani

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…

Goldman Sachs’ Latest Move Is More Frightening Than You Realize

14 | By Shah Gilani

Imagine Goldman Sachs, the most powerful, most successful, money-making machine in the history of Wall Street.

Now, can you imagine them getting out of the business of lead market-making in ETFs, the most successful, fastest growing trading and investment products ever manufactured by Wall Street?

Me either. But they are.

There’s only one reason, in my opinion, why Goldman would give up valuable turf it paid billions of dollars to own.

And it’s frightening.

Here’s what Goldman does as an ETF LMM (lead market-maker), and why them wanting out is so frightening…

Kors’ Splurge on Jimmy Choo Won’t Save Them from Retail’s Ice Age

3 | By Shah Gilani

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.

Here’s where Kors is headed, and how acquiring Jimmy Choo could be the final nail in the coffin…

The Only Way to Make Money off Blue Apron

7 | By Shah Gilani

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: A Recipe for Disaster

2 | By Shah Gilani

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.

Here’s how Blue Apron doomed themselves, and what makes them a really bad investment…