• 03 May
    Think Only Brick & Mortar Retail Is In Trouble? Think Again.

    Think Only Brick & Mortar Retail Is In Trouble? Think Again.

    • The number of bankruptcies in retail is increasing and the probability of new bankruptcies is still high.
    • In the online environment, the competition is intensifying their efforts precisely at the moment when Amazon has finally reached some kind of profitability.
    • Price wars could make the whole online growth story a bad experience for investors. We’ll use Wayfair as an example.


    We’re seeing significant structural shifts in the retail environment where companies that were once considered blue chips are slowly going bankrupt, think Sears Holdings (NASDAQ: SHLD), while online retailer Amazon (NASDAQ: AMZN) is crushing it.

    The question many ask is: are retailers cheap now and online retailers expensive, or is it the other way around? To answer this question, it’s extremely important to look at how the competition in the online space will affect margins. We’ll look at some situations and try to come to the best option for your portfolio. More →

    By Sven Carlin Amazon Investiv Daily Retail
  • 01 May
    What You Can Learn From Under Armour

    What You Can Learn From Under Armour

    • There’s a divergence between Under Armour’s fundamentals and its stock price.
    • Every growth story is bound to end or at least slow down at some point, and at that point the stock usually gets hammered.
    • However, sentiment must not be underestimated as an $0.03 earnings beat can send the stock up 10%.

    Crazy Stock Movement

    Under Armour’s (NYSE: UAA, UA) stock has had a wild ride in the last four years. It went from $12 in 2013 to highs above $50 in 2015 only to fall to the current lows around $19. More →

  • 16 Apr
    Sunday Edition: Would John Templeton Buy This Sector?

    Sunday Edition: Would John Templeton Buy This Sector?

    When a market is as overvalued as the S&P 500, it’s best to be defensive, rather than being 100% invested, trying to eek out every last drop of potential gain.

    I don’t care if the market moves another 10% or even 15% higher based on momentum.  When you compare the potential for another 5% to 15% upside against the risk of a 50% or greater crash, it seems like a foolish move to me.

    At the top of a business cycle (we are there now), the most successful investors will typically hold much larger than normal cash balances and only commit new money to sectors which are truly undervalued – and trading at a point of maximum pessimism with a nice margin of safety. More →

  • 21 Mar
    When It Comes To Retail, Forget Buy & Hold – Buy The Trend

    When It Comes To Retail, Forget Buy & Hold – Buy The Trend

    • Retail is a dangerous business as there is always a new player on the block.
    • Traditional retailers see declining sales and margins while E-commerce retailers see growing sales and declining margins. This is not a good combo for investors.
    • As always, there will be many opportunities to make money, but be sure to know what you’re doing and forget about moats and long term buy and hold investments.


    In Buffett’s biography, The Snowball, retail is described as a marathon business where you have a new, fresh runner joining the race at every mile.

    One of Buffett’s first retail investments was a holding company, Diversified Retailing Company Inc. (DRC), formed by Buffett, Munger, and Gottesman in 1966 with the goal of acquiring retail businesses. Their first acquisition was Hochschild-Kohn, which on paper looked like a great buy due to its substantial discount from book value, good management, unrecorded real estate values, and a significant LIFO cushion. Despite the good fundamentals, they sold three years later at no profit. Selling without losing money might not seem all that bad to you, but it’s a terrible thing for Buffett because it means he has missed opportunities to better allocate capital. More →

  • 17 Jan
    Is Retail Really Uninvestible? Sven Doesn’t Think So

    Is Retail Really Uninvestible? Sven Doesn’t Think So

    • As some analysts categorize retail as uninvestable, it’s time to look for bargain investment opportunities.
    • Sales are shifting to e-commerce, but earnings are what are going to determine your investment results.
    • The combination of brick and mortar and e-commerce might be the investment winner as it gives you fundamentals and growth.


    A Wells Fargo analyst, Ike Boruchow, recently called the retail sector “uninvestable,” at least in the short term. He based his statement on changing consumer dynamics that compress valuations, the favorable weather, easy comparisons to 2015 which have made retail look ok, and the 25 companies that have cut their guidance in the last two weeks.

    I’m attracted by such statements because the best investments are usually found where all others have given up. Especially when a whole sector is surrounded by negative sentiment, even prices of good companies decline and create amazing long term opportunities.

    In today’s article, we’ll analyze how the retail sector is priced in relation to its long-term fundamentals. More →

    By Sven Carlin Investiv Daily Retail
  • 24 May
    Don’t Sweat It: Unexpected Investing Opportunities in the US Retail Environment

    Don’t Sweat It: Unexpected Investing Opportunities in the US Retail Environment

    • The sector differences in growth and valuation create investment opportunities.
    • The sportswear industry looks well balanced between growth and valuation.
    • Online retailers are growing fast but still find it difficult to become profitable for investors.


    On May 13 the Commerce Department reported an advance in monthly US retail and food services sales for April of 1.3% to $453.4 billion, not adjusted for price changes. Inflation was 0.4% for April on a seasonally adjusted basis thus the growth in retail can be assessed as an important spur for the economy. This article is going to analyze sector changes and general trends in order to give some insight on how to better position one’s portfolio. More →

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