SocialPicks Sentiment:
** v.s.
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This Quarter's Sentiment:
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SocialPicks Community
TIF
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Luxury Goods Purchases to wane into the holiday season
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Simply put, consumers will be purchasing fewer luxury goods as we move into the holiday season. With the retraction of about 2 Trillion in available consumer credit, credit cards are shoring up their balance sheets and deleveraging. This will have a real impact on consumers as they may find they don't have enough credit this holiday season to maintain their normal purchasing 'power'.
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Retail is going to get weak again
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Bullish on TIF ...
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Tiffany & Co. (TIF) Interestingly, the jewelry store sector has been moving up and within that sector, high end jeweler, Tiffany (TIF) has broken above a price support. I am considering a bullish play either selling some short duration $40 puts naked or perhaps buying some in the money LEAPS calls.
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Tiffany's: Over-expanded, brand cachet destroyed, tough retail segment
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Tiffany's: Over-expanded, brand cachet destroyed, jewelry is going to be among the toughest retail segments in the coming few years. There's very little price flexibility with the rapidly rising cost of gold, silver, and platinum. I'll look for international sales/reputation to protect this firm a bit, but barring that, Tiffany's has the potential to be among the hardest hit of the retailers, especially if they continue to open or operate stores in markets that will be crushed by the negative wealth effect of the housing market collapse.
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Sell the retailers
- Ok, here is a dumb question. Who think the retailers will have improved numbers? Not me. I am selling them all.
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SELL THIS RALLY
- Sell this rally if you know what is good for you. The reasons are simple and relatively straight forward. Firstly, nothing has changed if anything th...
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