I reckon the "home banker" on shorting the retail sector is not as clear now as it was on Christmas eve, The sales have been packed, reckon theve all shifted lots of stock, the caveat being at what cost? I know that the clothes retailers typically work on a 200% mark up, so on that basis they are still shifting the the stuff at a profit even at half price, they got their overheads, but economies of scale dictate that the overhead doesn`t increase with the volume of goods sold cause they are already geared up for it, and of course there are very little warranty issues etc with a pair of trousers.
If the evidence in the papers and in the shopping centres are to be believed, then I would be cautious now of shorting them, maybe the time to short the likes of next has been and gone, rumour and fact etc.
Which brings me onto GMG which is now looking value, thinking about it logically, they have big competition from the likes of Curry`s, Comet, Dixons, etc, but who is the biggest buyers of the games? Well teenagers of course, the type who like to catch the bus into the shopping centres with their mates on a Saturday afternoon, and thats where all the GMG shops are, they wouldn`t catch a bus to an out of town Retail park where all the Comets now seem to be.
And I reckon there all catchin them Stagecoach buses as well ye cnuts!!!
BY THE WAY, IF AGT DROP DOWN TO 17P THE MINTER COURT SHOULD ALL PILE IN TOGETHER
Thus stock quotes
Thus stock charts
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