Tuesday, December 06, 2005

Trading Update

Quick update... sold enough January 47.50 calls to cover the entire EBAY position at $1.75. I sold the January and not the December calls for tax reasons. Speaking of taxes, I had better start looking at my losers list and prepare to sell them off and claim the tax losses.

Still got my eye on Abercrombie and Fitch (ANF). I might make a move on it soon.


Anonymous said...

Well, Hollister is doing really well I think.. so if ANF actually owns them.. haha but don't listen to me, I know nothing! This is really just a post to show you that I got a blogger username.

Brute Force said...

But, you should listen to yourself. It was the legendary investor Peter Lynch who urged investors to "invest in what you know." Adhering to this principle, especially when dealing with stocks in the retail sector, can be quite beneficial.

You can be my retail analyst.

What do you think of Charlotte Russe (CHIC) and Bebe (BEBE)? Know of any up-and-coming stores that have not yet gained full popularity?

Anonymous said...

I think chococat gives valuable insight. I agree ANF brands are gaining a lot of popularity particularly with the young folk. Even @ the gym nowadays I see people wearing ANF workout attire. You bring up Bebe. Now that brand is very popular with the ladies. Their merchandise is real chic and sexy.

Pay attention to look for retail companies that are popular with Wall Street as well as with the public. Take Costco for instance, it is very popular with shoppers yet not that popular with Wall Street types. Wall Street thinks that Costco pays their employees too much. Moreover, Wall Street views Costco as a not ruthless enough or cut throat enough type of organization. Hence, their stock has not done much.

Now if you like the retail sector, there’s this company that I like named American Apparel. Their merchandise is pretty stylish and they are just about the only clothing company that manufactures their clothes right here in the U.S. of A. Yeah I know what you’re probably thinking “a clothing company that does not manufacture their merchandise in a Pakistani sweat shops, is that possible?” Yes it is. American Apparel actually makes their clothes in Downtown Los Angeles and pays their employees well over the minimum wage. If you like growth, this company is growing fast.

Brute Force said...

Good points on the divergence of public and Wall Street opinion. I looked into American Apparel, and they're not yet public. BEBE has been hurting recently...Three years ago, women absolutely loved them, but these days I don't hear as much about them.