cubs >>> Here we go.
Read what they said in May (and made people buy the sucker bounce. Thats a fraud. "Get ready for the second inning")
Risky consumer cos hit, discretionary a bad word
reuters.com
SAN FRANCISCO, June 23 (Reuters) - High-risk consumer companies selling nonessential products to increasingly wary U.S. consumers took a hit on Monday, as Goldman Sachs said the consumer sector would continue to falter in coming months.
Companies that rely on consumer spending and face questions about prospects for growth or survival were summarily sold in a day when the overall market barely budged.
Motorola Inc (MOT.N: Quote, Profile, Research, Stock Buzz), Ford Motor Co (F.N: Quote, Profile, Research, Stock Buzz), Pier 1 Imports Inc (PIR.N: Quote, Profile, Research, Stock Buzz) and Talbots Inc (TLB.N: Quote, Profile, Research, Stock Buzz) fell as much as 8 percent, 9 percent, 18 percent and 14 percent, respectively. Circuit City Stores Inc (CC.N: Quote, Profile, Research, Stock Buzz) and General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz), meanwhile, fell as much as 20 percent and 7 percent.
The sell-off followed a Goldman Sachs note predicting a series of earnings warnings by consumer-focused companies in coming months. Goldman issued a mea culpa, saying its earlier bet that consumer companies would get a lift in May was wrong.
"We boosted our Consumer Discretionary and Financials weights in May on the belief the sectors would benefit from bank recapitalizations and fiscal stimulus. Our thesis was clearly wrong in hindsight," read the note to investors.
Goldman Sachs reported that its consumer discretionary sector fell 7 percent during the past month, adding it believed the sector will continue to lag during the next several.
"STILL DETERIORATING" |
