Replies to post #93257 on Savvy Trades and Investments

[wadegarret]

Hweb, BGFV & ASO

The problem is expectations for 2022 are that earnings will trend down. Once any company has down trending revenues and earnings, valuation is reduced. That's why ASO has a tiny PE, as does BGFV only 7 or so. I personally would stay away from the entire group.

At the same time, I would stay away from this market in general ! 2-3 interest rate hikes expected for 2022, and 3 or more in 2023 doesn't bode well for making money in the stock market IMO. All the while, valuations in all indexes are stretched huge already. I personally like money in the bank right now, as I feel we are in a 1980s possible situation

[gilead23]

The thing about BGFV

Their stores are awful. It’s just a really crappy product. When it was 2 bucks a share it was easy to buy it anyway. At these levels it’s a pure trading vehicle. This doesn’t look like a company with a long term future. My wife stopped into one a few months back when we were traveling, and was laughing about how bad the store was.

Her attitude was
“This is what you invested in?”
With more then a bit of incredulousness

Yes honey, but we made a bunch of money on it. The real question is how much do those numbers come down. I would bet a year from now they are down a lot.

If the market doesn’t take a big hit I agree with you though. There is a decent chance of a 20% scalp.