Children’s Place (PLCE), Ahead of the Game
Mar 9th, 2009 | By Katharine Schildt | Category: FeaturedWhile other discount retailer’s struggle to “stay above water” this company is ahead of the game and the stock market’s prediction of instability.
While other discount retailer’s struggle to “stay above water” this company is ahead of the game and the stock market’s prediction of instability.
What happens to the relationship between the small-cap investor and the unemployed consumer during a recession? Greg Gunner of Whiskey and Gunpowder has advice, buy low and sell high.
Early indicators suggest that there is still some life left in the American consumer. The hordes were back out for the Thanksgiving weekend, though mega discounts means retailers will still struggle to break even. Martin Denholm says investors should stick with bargain-oriented retailers like Wal-Mart (NYSE:WMT) and TJX Companies (NYSE:TJX).
With the economy eroding at an alarming pace, it is no wonder investors are turning away from their former retail haunts filled with trendy, over-priced items.
Stores like Whole Foods (NASDAQ:WFMI) and Trader Joes are watching their customers head to low-cost competitors like Wal-Mart (NYSE:WMT) and Safeway (NYSE:SWY).
It is no surprise to see an ultra-cheap retailer like 99 Cents Only Stores (NYSE:NDN) climb its way to the sole spot on the list of companies reaching 52-week highs today. The global economic crisis has actually been the best thing to happen to the company’s share price in a long time.
The rationale behind the positive run is obvious. When the economy is in the gutter, consumers have less money to spend on the things…
Today, we have another recession proof way to score big money, while even Buffett is fleeing this country. Wayne even includes a few smaller companies that should do handsomely over the next few months.