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CHS - when a good stock goes bad


Darren said: "Chico's is a company that has been getting their ass kicked lately. But a few year backs the company returned over 10,000% to investors. Their business model seemed extremely profitable for awhile, but the company had problems growing. They came apart when they attempted to scale. If you were a long term holder in the stock it would have been your job to change your perception of them as an operational wunderkind to an also ran. And you would have had to sell out your stock to support your decision. I personally feel that no one should make Gods out of any of these companies. They are all subject to economic forces and competition that can rapidly change the game for them."

AlfredSokol said: "Take a look at old Dow Jones Industrial Average listings or the [url=http://en.wikipedia.org/wiki/Nifty_Fifty]Nifty Fifty[/url]. You will see many companies that used to be stalwarts who are now entirely out of business. A couple names to keep in mind are Zerox and Polaroid. Their names were actually synonymous with the products they sold and the industries they created. People thought they could never fail but naturally competition introduced competing products which eventually pushed their market share to zero."

Heather said: "The business climate can change quickly. Bear Stearns is proof of that. Tread lightly and watch the tickers.."

tpppp08 said: "These days u cant fall in love with the company, just have a long enough affair with the stock until the returns start fading away... and on to the next stock. Dont see it as cheating.. more like surviving.."

tpppp08 said: "1/2 a billion $ sell-off? wow.. why cant I have that kind of a position to close out on..'"

AlfredSokol said: "CHS has core issues in a sense. I still think they are a pretty kick ass company but they have done a very crappy job of rolling out new stores. Their stronghold stores do very well because of customer loyalty. I think CHS can come back with a stronger game plan. There current shares seem cheap to me for long term accumulation. :th_dblthumb2:"

oldstocks said: "People heard about the stock and that was the end of the party. Instead of growing, it was a time to try manage and please shareholders. Always a death nail for these fast risers. Krispy Kreme? What darling stock is next? SBUX?"

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