maybe behind the drop today

article in WSJ re inventories

Tuesday, Cowen and Co. published a report warning “inventory is above sales growth across retail,” and noting that merchandise levels were bloated at DSW Inc., Dicks Sporting Goods Inc. and Skechers U.S.A. Inc., among other chains.…

the problem reported does not seem to be specific to one company


Retail in general. Look at M. They are the IBM of retail. Everyone who sells stuff who isn’t AMZN is getting destroyed today.

The market has at least temporarily become on of the few market darlings and many landmines. SKX may not be a landmine, but it’s also not a market darling and is close to the blast radius of the others. Under 25, I may add some, but not looking good for the shorter term. Probably will be fine in a few months though so long as the next ER or 2 are good.

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Yes, retail. And the USD dropped more. Now EUR/USD is 1.07 versus 1.10 recently.

Under 25, I may add some, but not looking good for the shorter term
Be careful what you wish for, it could hit $25 tomorrow. Sliced below the 200dma on those earnings and inventory reports. Once again, investors are brutalizing any stock that misses or fails to beat. The nice chart thing about 25 is that is support from where it started its last big run, but in today’s market I don’t think that will matter. Losing 50% from your high is a lot of damage that will keep “players” away for a long time. You will have plenty of time to accumulate. I can see no argument for it being 20% higher before an earnings report that is a surprise blow out. They may start to hint that inventory is down or sales are picking up, but that would be a small spike you could evaluate and use to start adding.

I have a couple stocks in takeover mode (SWI, EMC) that I could use to redeploy money to 1YPEG stocks, but not sure if I am ready for SKX. Not that it isn’t a good company, but the sellers can still prevent it from being a good stock for a while giving me time to mull it over more.


Yup, the chart looks like death, and anything retail has pretty much been in free fall mode. Some reports last night won’t help that.

Certainly no rush on this one, as sellers will likely outweigh buyers for months. Just wish I didn’t add a second batch of shares on the way up. Got lulled into a false sense of security about the company’s earnings growth while the stock was a bit ahead of itself at the time