Here is the problem with retail. Because of inflation, retailers are paying employees a lot more. If inflation slows, that won't lower labor expenses.
Sticker shock will take a long time to wear off. And those of us who covered and lived with inflation from 1965 through the mid 1980s know today's low commodity prices can bottom out at any…
Here is the problem with retail. Because of inflation, retailers are paying employees a lot more. If inflation slows, that won't lower labor expenses.
Sticker shock will take a long time to wear off. And those of us who covered and lived with inflation from 1965 through the mid 1980s know today's low commodity prices can bottom out at any time.
And then there are the Russia and China problems that all retailers are dealing with.
Worse, which private equity, hedge fund and venture capital speculators are putting money into retail? Why and why not?
Take a look at Walgreens (WBA). I'm in it because I'm hoping it can solve is staffing and business model problems while paying a very cuttable and high dividend. I'm selling covered calls on the stock and reducing my net debit by collecting dividends and calls options premiums with very low delta and low risk options trades.
WBA is not a growth stock. It isn't adding many stores or starting new ventures. And it's not really a buy now. But I'm getting a good return on risk while I wait for the thing to rally.
I specialize in recycling Amazon boxes and envelopes. DW is a senior who shops Publix and useless Kroger's delivery service while buying staples and some packaged foods on Amazon. I don't see her going to the malls or shopping like she used to do. Seniors have a lot of disposable income, but are they returning to the malls. Can any retailers find ways to get people back in stores?
Some malll REITs are seeing more mall traffic, but their stocks aren't impressing me. Macerich Co. (MAC) is a 40% sell on Barchart.com. But then, I think REITs are bad investments and always have been.,
The bottom line is I don't see a good retail trade. Stephany Link likes TJX (a 100% buy on Barchart.com) and some others are touting Ross (ROST) a 100% buy, and Burlington Stores (BURL) an 8% buy.. But I don't know if they're talking their books, or what? Dollar General is a 40% sell. WBA is a 100% sell. AMZN is 100% buy. WMT is a 24% buy.
Here is the problem with retail. Because of inflation, retailers are paying employees a lot more. If inflation slows, that won't lower labor expenses.
Sticker shock will take a long time to wear off. And those of us who covered and lived with inflation from 1965 through the mid 1980s know today's low commodity prices can bottom out at any time.
And then there are the Russia and China problems that all retailers are dealing with.
Worse, which private equity, hedge fund and venture capital speculators are putting money into retail? Why and why not?
Take a look at Walgreens (WBA). I'm in it because I'm hoping it can solve is staffing and business model problems while paying a very cuttable and high dividend. I'm selling covered calls on the stock and reducing my net debit by collecting dividends and calls options premiums with very low delta and low risk options trades.
WBA is not a growth stock. It isn't adding many stores or starting new ventures. And it's not really a buy now. But I'm getting a good return on risk while I wait for the thing to rally.
I specialize in recycling Amazon boxes and envelopes. DW is a senior who shops Publix and useless Kroger's delivery service while buying staples and some packaged foods on Amazon. I don't see her going to the malls or shopping like she used to do. Seniors have a lot of disposable income, but are they returning to the malls. Can any retailers find ways to get people back in stores?
Some malll REITs are seeing more mall traffic, but their stocks aren't impressing me. Macerich Co. (MAC) is a 40% sell on Barchart.com. But then, I think REITs are bad investments and always have been.,
The bottom line is I don't see a good retail trade. Stephany Link likes TJX (a 100% buy on Barchart.com) and some others are touting Ross (ROST) a 100% buy, and Burlington Stores (BURL) an 8% buy.. But I don't know if they're talking their books, or what? Dollar General is a 40% sell. WBA is a 100% sell. AMZN is 100% buy. WMT is a 24% buy.