Exciting Names: Gamestop, Target, Apple...
Here's your "Trading Retail with a Blah Consumer Playbook" (shorthand version): Own great merchants, ignore or short bad ones.
Greetings from the NASDAQ Market Site where there's only a 3:30 PM television spot and one episode of Fast Money standing between me and 10-days of quasi-vacation. What's "quasi" about it? Well, right now my entire plan is to do "Nothing". I'm sure I'll come up with something more ambitious during the break but, at least for the moment, you can't imagine how much the notion of Nothing excites me.
Other things exciting me as I double check the stuffing on my couch...
- Gamestop (GME) is screaming higher after beating estimates this morning. It was a great quarter and I continue to love (LOVE) the video game space for the next 18 months. That said, GME is trading an awful lot like there were bears lurking in the stock. I'm still long Activision (ATVI), for what it's worth and think the Halo frenzy will build for the group going into September.
The exception-that-proves-the-rule on the game space: Sony (SNE), which seems like a better long-term short every time I look at it.
- Speaking of retail, I'm watching the dust settle on names like Target (TGT), Zumiez (ZUMZ) and a fistful of other names in the space. There was way too much shorting going on based on the idea of mortgage meltage but the price adjustment seems to have been made, on the trading front.
Here's your "Trading Retail with a Blah Consumer Playbook" (shorthand version): Own great merchants, ignore or short bad ones. [NB: The only difference between that playbook and your Strong Consumer Guide is the "or short" part.]
- Decent amount of angry letters regarding Apple (APPL) and my pig-headed refusal to take anything but a purely cynical stance towards all things i-Phone. Folks, there are a lot of stocks out there. Right, wrong or flat, I spiritually short Kool-Aid by instinct. The very fact of my getting hate-mail for dissing a $600 i-Pod that can sometimes make phone calls makes me all the more comfortable ignoring Apple's stock.
I think Apple's a good company, I think the i-Phone is cool for Apple but a near-disaster for AT&T (T) and I don't want to be long or short either stock. If my not wanting to be long Apple makes you furious... well... you just might a need a week or two of doing nothing.
I know I do and, judging by the fall-off in the tape, me and my angry pen-pals are in good company.
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