Signet's future doesn't look very bright to me. Although they should get a boost from their gold inventory because of the flight to gold that is occurring it won't be enough. As Main street gets weaker so goes Signet. New couples will not be awash in cash as they have been for the last bunch of years so Signet will have trouble passing on their higher priced goods. This will result in a smaller gross margins. I don't see any reason to be loading up on SIG here. Maybe in the low single digits but definitely not here. I bet this quarter will be dismal at best. Can you imagine someone running out and making a luxury buy in this environment. The retail shopper isn't that stupid. Sell baby sell.
$16.21 (10/09/08)
