Paul,
Thank's a lot for your comments. They are always helpful.
With regard to BKE and BBBY, your feedback is very useful, because I don't the actual stores. I live in Europe... Nonetheless, my analysis was based on historical financial performance, which in the last 10 years was great. Of course, in apparel more than in other sectors, fashion matters and past performance is less relevant. Nevertheless, there are some brands that are less affected by fashion. In Europe an example is Hugo Boss, which is facing difficult times, but I am almost sure they will continue to be successful. With regard to Buckle, I don't know, but based on resilient historical performance, I believe that it will make it. Nonetheless, I will limit my losses to around 10% and track the company performance in the coming quarters, if it is the case. I am using a similar rationale to BBBY as well.
With regard to WRLD, It is a similar rationale. I don't know the company. But I would say that a company that is out there for decades with a resilient financial performance should have a valuable brand/network. Obviously, regulation may be a challenge, but I want to believe that management will be able to handle relatively well. From the recent annual report, my understanding is that they are doing there homework. Nonetheless, I apply a similar rationale to this investment, I intend to limit my losses, and wait to see, if that's the case. But so far I have a positive return on this position.
SWKS. Currently with a gain of 8%. I bough near the support level. I am trying to be more patient in opening new holdings and it has paid off. On the current positions I hold, I am loosing money in only 7 of them and none of them more than 10%, so far... |
