Silicon Investor (SI) -- The First Internet Community

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 : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: ChanceIs who wrote (113221)	3/28/2008 10:03:23 AM
From: Perspective	Read Replies (2) \| Respond to of 306849

JCP - this must be really uncomfortable for the lemmings that were piling onto the "squeeze shorts in retailers" trade: biz.yahoo.com I've read quite a few articles in the past month that reinforced for me why I will remain short retail and restaurants, despite the foolishness in their shares. These guys operate on razor thin margins, with huge fixed costs. Talk about leverage - the wind blows just a little different than expected, and POOF - JCP earnings drop from 75 cents to 50 cents. And you wouldn't think much of it "Ah, it's just Q1", except that 25 cents is still a good chunk of their full year $4 guesstimate. That, and the Q1 estimates have already been falling like a stone: finance.yahoo.com From 94 cents just within this quarter. Retailing and restaurants are really bad businesses to be in during a consumer downturn. Still gotta pay the rent, gotta keep the lights on, and gotta carry that inventory. Oh, and you issued credit cards to your customers? <g> `BC