Moving back into retail:

bjohn13 said: "After selling LOW for a big loss last March, the only stocks I had left that really even came close to representing the retail sector were DIS and MCD. I'm thinking it's time to get back into retail with these two picks. CROX. What can I say? I'm impressed with the product. I have a pair of Crocs Axle shoes, and I love them. Plus, the stock seems to be selling well below value at the moment. They are also a company that has aggressive expansion plans, and with a market cap of less than $1 billion, there is a ton of room for long term expansion. The stock is selling at a quarter of what it was six months ago. I think anything below $15 a share is a good price, and it's currently at $10.96. BBBY. I got this stock tip quite by accident. I was reading one of those spam emails that said several companies, including Bed Bath and Beyond, had declared bankruptcy. Of course, being that some of those companies were publicly traded, I did a little research, and I found that BBBY is actually one of the healthiest retail stores in the country at the moment. With a rapidly expanding business that has plans in their immediate future to move into Mexico, I think anything below $32 a share is a good investment. Since we're moving into summer, I'm hoping to see the price drop below $30 so I can snatch up a bunch at a good value."

AlfredSokol said: "I think the recession is still too bad to get excited about retail."

bjohn13 said: "Oh, I don't necessarily disagree with you. I named these two companies because they have appeared to have weathered the recession quite well dispite the fact that their stock prices have tanked. They are both aggressively expanding companies with market caps that have a tremendous amount of room for growth, and I like BBBY in particular right now because of their plans to expand internationally."

ratAphooey said: "Interesting picks. I always enjoyed shopping at Bed Bath and Beyond myself."

bjohn13 said: "I'm a bachelor who is no longer ashamed to say that I shop at Bed, Bath, and Beyond. They are the only place in town that sells things like shower curtain rings and toothbrush holders that don't have butterflies or flowers on them. Plus, I love the smell of their foamy hand soaps. What can I say? I'm a sucker for good smelling hand soap! That said, going back to AlfredSokol's post, the doom and gloom that is currently surrounding the retail sector right now is the reason why I think that right now is the best opportunity to pick up retail stocks that we may see for quite some time. I like to shy away from behemoths like WMT, TGT, and even BBY when it comes to retail. They are running out of room to expand, and let's face it. When WMT and TGT are posting profit margins below 4%, with as many stores as they have open, they have to have some that are losing money. I anticipate that the recession will hurt the stalwarts like those listed above a lot more than they will hurt the smaller chains, and this will give the smaller chains opportunities to expand."

Heather said: "If you're serious about retail, one stock that might be worth checking out is CHS. Right now it's at an all time low (under $10.00 a share) The company sells clothes, accessories and sexy things for ladies."

newguy87 said: "I'm the opposite of you I'm more a fan of the behemoths like WMT, BBY etc if I want to get into retail...although Walmart has had a nice run as of late. They may have no more room to grow in the U.S but they're looking to expand abroad especially in China and that's where they're hoping the growth comes from. TGT as far as I know is not expanding anywhere globally. I'm not a big fan of retail yet, some are as an early cycle recovery play or as a play for those gov't rebate checks. Some have had a nice run and I'd wait for a pullback and them some retail names may make for good trades. As to your picks: CROX - I've never understood fad companies and pretty much loathe to put my money near them cause I never understand them and never know when the fad may end. I didn't understand 5 buck starbucks coffees, wheely's shoes, or crocs plastic shoes which I've been told in other parts of the world similar type plastic shoes are sold as low end goods but somehow here is able to fetch a premium. Doesn't mean you can't make money playing the momentum and the fad but if I can't wrap my brain around it I tend to stay away. BBBY - I also don't like. I've been to the store and I like their goods etc..and they sell good quality stuff for a price. A similar chain in the same space, Linen-n-Things owned by one of the PE companies is going bankrupt. I see furniture stores having deep discounts or going out of biz sales and HD and LOW having troubles. So to me anything tied to the home right now is radioactive and something I'd stay away from myself. I'll take your word on you research cause I've done none on it, lol, but I'm surprised that BBBY being one of the healthiest retailers out there. In a good economic environment I can see it but in this type I'm quite surprised. They don't have the great cash flow WMT has or the "essential" monopoly that BBY seems to have on the electronics market. In addition to the behemoths, if there are any retailers to choose I'd myself take a look at some of the teen retailers like AbFitch, American Eagle etc.. and also a video game retailer GME. You'd have to look for good entry points cause I have no clue where any of the prices stand right now. If any retailer is seen as more recession proof it's those because teens usually spend most of their disposable income from their jobs and parents tend to cut their own spending b4 spending on their children which is why I also included GME. Besides with consoles like the Wii out, people might resort to video games as a cheaper form of entertainment rather than going out. Just my humble amateur opinions. Good luck. :)"

bjohn13 said: "I'm not a huge fan of retail stocks in general, it just appears to me that now seems to be a good time to get in. I like to shy away from the behemoths, as I mentioned before, simply because retailers tend to make the most profit for their stock holders from expansion. I held LOW for a while because, quite frankly, they were a retailer I believed in. They sold quality products for a decent price, and I still opt to shop there over other local home improvement stores. Looking at some of the other picks mentioned... CHS is an interesting store. Somehow, they have managed to open almost 1,100 stores since 1983, and I have never heard of them. I guess that's not too surprising since I'm a 33 year old male. At any rate, the fun of investing is that we all have different opinions and we all have different ideas on what constitutes a good stock pick. My initial glance at CHS tells me that the stock is selling for about what it is worth. There also seems to be some room for expansion, given their market cap at just over $1 billion, but their P/E ratio and their profit margin both do leave a little to be desired. I'm going to shy away from this one for now, though I may change my mind if it drops below $7 a share again. GME is currently selling for about $50 with a P/E ration of almost 30. This is a little frightening to me at the moment simply because it seems to me that entertainment budgets seem to be the first to get cut when the economy is slumping. Even with retail stock prices at an all time low, this one appears to be a bit overpriced. AEO is a nice pick. An initial glance tells me that this one may be slightly undervalued at the moment, and I will add it to my watch list. The current dividend rate is even at 2.1%, which is pretty stellar for a retail stock. Below $16 a share, where it was about a month ago, would be a steal, and a relatively small market cap leaves a lot of room for expansion. And that brings us to ANF, which is probably the pick with the most potential among those that have been proposed. They have the highest market cap of all of the stocks mentioned, but they have a name that is very well known and has apparently passed the hype that I had initially thought was relegating it to a fad. That means that they have a lot of room for expansion, and their balance sheet is quite attractive. Even at $74 a share, they may be slightly undervalued. However, I'm going with the old adage "I just don't get it" with this one. The difference between ANF and the other three picks mentioned in this post is that I have actually shopped in an Ambercrombie and Fitch store before. A vast majority of what they sell is available in other places for a cheaper price. That's why I just don't get it."

newguy87 said: "The thing with AEO or ANF and others like them is that I don't see them as fads as much as the other things I mentioned because they are brand names that are the "in" brands to have among teens and young adults. Just like say those Louis Voutton handbags or Burberry scarfs etc.. are among adult women. As long as they keep their panache and aura among the teens they will remain popular. I agree that I think frankly most of the goods in these stores are way overpriced but teens aren't looking for good deals they're looking for things that'll make them fit in and seem cool and they'll spend their hard earned money on it no matter the price. As to GME I didn't realize their PE was that high, does seem pricey but they've been doing well for quite awhile and they usually are the place to go for games. I'm sure that new grand theft game should help them a bunch. I agree with the economy slumping that entertainment dollars get cut but they also get diverted from say a movie or dinner which you get only one use out of your money to indoor entertainment with the family which can be enjoyed over and over for a one time outlay. LIke I said also parents will cut out their own spending b4 cutting out spending on their kids. If you're looking at expansion for retailers than maybe take a look at WAG which has been doing quite a bit of expansion as of late but their share price has been hurt recently and maybe CVS also who have done quite well with their caremark merger, don't know as much about their expansion plans."

bjohn13 said: "WAG is a company that I have too much invested in at the moment, being one of my parents is an employee. One thing to remember about CROX, though, is that they have moved beyond the trendy (and ugly) beach shoes that made them famous. They now make stuff like shirts, pants, dress shoes, and even tennis shoes. The material they use is a resin, not a plastic, and you can feel the difference. It's more foamy. It's very durable, very comfortable, and very light."

newguy87 said: "GME just reported this morning and they beat earnings and had a record first quarter and ofcourse their down like 5 bucks, lol. They guided 26 cents from a previous 26-28 cents and I think raised the full year outlook. Could be just profit taking or just a sour mood on the retail sector in general. Fundamentally sounded good to me though. In the low 40s I think it has support and not bad price to get into if it goes there."

ratAphooey said: "What about JNY or LIZ? Almost like playing retail."

bjohn13 said: "CVS is a fairly large company with less-than-attractive stats. I think the risk/reward factor would be very similar to WAG. LIZ seems like a gamble. It appears as if they have negative cash flow even though they have a pretty popular name. JNY is actually a very attractive looking stock, and they actually have quite a few of their own stores. I'm going to add it to my watch list, though at this time, I'm strapped for investing capital until the beginning of next month (plus, I've reached my self-imposed monthly limit on paying commissions). Thanks for the responses."

newguy87 said: "Well it looks like maybe a typical over reaction of the street to fairly good earnings for GME. It's taken back 1/2 of the losses for the day. Will have to see over the next week or so if it goes back down to the lows or holds. It's funny I commented on this thread for retail in response to your question and I'm not even a big retail guy but in responding I'm finding I'm starting to talk myself in to possibly taking a shot with GME, but I want it at lower levels if it gets there."

AlfredSokol said: "CHS is the one investment I made the most money on. The company is really down and out compared to what they used to be. They have had no luck handling their expansion. They seem to do a poor job of advertising and store location."