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| jeter4982 |
 Posted: Tue Apr 12, 2005 12:02 pm Post subject: Clothing Stores |
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Investing Sr. Associate
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Hey!
I have heard that it has been and it is still a good time to buy some stock in clothing companies. They are coming right into their prime season: spring-summer, and should see profits soar. I know I have already bought some stock, and have seen it go up a little already. 
Tom |
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| Benjamin |
| Posted: Tue Apr 12, 2005 12:11 pm Post subject: |
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Administrator
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Hope you don't mind, I moved your post to the simulator discussion to give users an idea of what should go here.
So tell us, what clothing stock did you buy and how much?  heh.
The sim is great for testing seasonal stuff like this to see how it does. Maybe if you notice a real trend it'll be easy to spend that 50k in real money next spring. King |
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| jeter4982 |
| Posted: Tue Apr 12, 2005 12:24 pm Post subject: |
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Investing Sr. Associate
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Ya, ok. I just purchased some Abercrombie (ANF) and Gap (GPS) stock. Anyone else going with this clothing trend???
Tom |
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| Dave Rathbun |
| Posted: Thu Apr 14, 2005 2:46 am Post subject: |
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CFO
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I have a suggestions for folks to research... it's something I got into a few years back, and it has been very very good for me, and the news (so far) continues to be good. Whole Foods (WFMI) (Yahoo Five Year Chart) is the "Walmart" of the "healthy living" sector. If you don't have them in your area, they are a chain of organic / natural foods that started down in Austin and are expanding across the country. They essentially "own" this market, with their main competitors struggling to keep up. (See Wild Oats for one example). WFMI is pricy at the moment, but getting good press. I believe they are about to split as well, which many people like as an investment signal.
I'm not a big clothes person  and I tend to invest in things that I like, I understand, or I can relate to. It helps me understand what I'm buying. |
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| jeter4982 |
| Posted: Thu Apr 14, 2005 12:01 pm Post subject: |
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Investing Sr. Associate
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Ya, I am not a big clothes person either, but I do know that their biggest season is the spring/summer, and that is coming up right now. 
Tom |
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| thrilla |
| Posted: Thu Apr 14, 2005 3:21 pm Post subject: |
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Investing Sr. Associate
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| jeter4982 wrote: | Ya, I am not a big clothes person either, but I do know that their biggest season is the spring/summer, and that is coming up right now.
Tom |
The season should not really affect whether the stock price goes up or down actually. The price of the stock typically reflects the seasonal changes. What makes the difference is whether or not the stores meet the target goals and expected earnings.
For example, snowboarding companies do not necessarily see a downturn in the summer and an upturn in the winter. Just take a look at the one-year chart of any seasonal company. |
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| jeter4982 |
| Posted: Sat Apr 16, 2005 5:03 am Post subject: |
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Investing Sr. Associate
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Ya, I realize this, but I just think it is going to be a big season for clothing stores, thus having them make more than their expected goal.
Tom |
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| freeye |
| Posted: Mon May 23, 2005 12:49 pm Post subject: |
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Investing Manager
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| i like urban outfitters, (URBN) in clothing sector. |
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| freeye |
| Posted: Thu May 26, 2005 6:17 am Post subject: |
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Investing Manager
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isn't todays stock price a reflection of investors expectations of the future propects of a company.
a winter apparel company stock price may actually rise in summer and drop in the winter as investors expectations turn to the future outlook for the company. |
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| blackfoxtrade |
| Posted: Thu May 26, 2005 6:35 am Post subject: WFMI short term |
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Associate
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| Dave Rathbun |
| Posted: Thu May 26, 2005 11:27 am Post subject: |
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CFO
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WFMI has been a great stock for me. I have owned it for five years, and have made back my initial investment several times over. It's what is called a "category killer", as the leader in their market segment, the game is theirs to win or lose. And so far they are winning.
There's a 2-1 split coming soon, if I remember correctly. Some people buy stocks on that sort of news... which is absolutly pointless, as the stock is worth the same before and after the split. |
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| freeye |
| Posted: Fri May 27, 2005 1:45 pm Post subject: |
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Investing Manager
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I guess i've never really thought of WFMI as a category killer.
thanks for mentioning that thought.
it must be killing the single category of health foods when it goes up against the likes of the other national retail chain grocery stores.
and i'm speculating here now... it must do well against the national retail chain health food stores too, with the kind of growth you're experiencing. |
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| Dave Rathbun |
| Posted: Fri May 27, 2005 2:37 pm Post subject: |
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CFO
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| freeye wrote: | | and i'm speculating here now... it must do well against the national retail chain health food stores too, with the kind of growth you're experiencing. |
The reason it's a category killer is that people that want the type of product that Whole Foods (WFMI) offers do not find that product at Wal*Mart. So there's no competition. Wal*Mart is killing the retail grocers (Winn-Dixie has just filed, others are likely to follow) because the grocers can't compete. But Whole Foods doesn't complete; they're in a completely separate market category. And many of the "type" of people that shop there won't shop at Wal*Mart for any reason. Yes, that's a stereotype, but you know, stereotypes come from somewhere.
I have a friend that works in the natural foods segment, and he turned me on to a couple of stocks several years ago. WFMI and OATS. I picked WFMI... and am glad I did. OATS (Wild Oats) has struggled, while Whole Foods is thriving.
Interestingly enough, OATS is based in Boulder, Colorado, and WFMI based in Austin, Texas. They actually have very similar roots. |
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| raspberry24 |
| Posted: Sun May 29, 2005 5:19 am Post subject: |
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Member of the Month
May
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| I bought Chico's FAS Inc (CHS) which is clothing. It hasn't done too bad so far. A friend said they had bought stock and it was doing well, so I thought I would try it out on the sim. |
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| arnieelkins |
| Posted: Mon May 30, 2005 2:03 pm Post subject: |
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| Dave Rathbun wrote: |
There's a 2-1 split coming soon, if I remember correctly. Some people buy stocks on that sort of news... which is absolutly pointless, as the stock is worth the same before and after the split. |
Quite true, and the rational, logical part of me agrees completely.
However, the emotional side of me agrees with the people who think as follows:
The stock is priced so high, it will be hard for it to go up.
If the price were lower, it would be easier for it to go up.
A split? GREAT! Half the price means it can double! Buy! Buy!
It is hard to argue with emotion in the market. People get the idea that a lower price means there is more room for upward movement, so when you have a split, people naturally want to buy, because they see the stock as having already been double the price, so they figure it will get there again. And, when enough people buy in to that sort of thinking, it becomes a self-fulfilling prophecy.
Fortunately, I have pretty good control of the emotional side. Of course, I haven't started playing with real money yet... |
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