Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: A1111	9/27/2022 5:17:53 PM
	Read Replies (1) of 78731

DDS short. DDS operates in the department stores industry and is actually valued as the largest company by the market with a market cap if $4.6B. Severally over valued. Usually, this industry moves together with peaks and troughs. But instead, DDS is moving with the S&P500, holding resilience to its competitors. This is strange considering DDS has worse revenue/ store sq ft at $138 to Macy's (its main competitor targeting mid-range) $218, and Kohls $236 FY21. Additionally, DDS has worse normalized economy (pre 2020) ratios and margins in general. I believe DDS is severely mispriced because of their share buybacks, boosting EPS. Really, the difficulty with shorting is timing. I expect this to fall soon to align with industry normality. I expect them to miss earnings because their company hasn't really improved and DDS have to hold onto their high EPS analyst expectation targets. Downward macroeconomy also beneficial for the short.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next