Investors looking to score big gains should always pay attention to the retail sector. Not the top retail stocks that seem to pound out modest sales gains each year, but the weaker retailers that have hit a rough patch. These retail firms could see shares slide far below prior peaks once same-store sales weaken and investors shun them. Yet these broken retailers can also become vastly oversold — and great bargain-hunting fodder. For example, I suggested that women’s apparel retailer Christopher & Banks (NYSE: CBK) was far too cheap — based on… Read More
Investors looking to score big gains should always pay attention to the retail sector. Not the top retail stocks that seem to pound out modest sales gains each year, but the weaker retailers that have hit a rough patch. These retail firms could see shares slide far below prior peaks once same-store sales weaken and investors shun them. Yet these broken retailers can also become vastly oversold — and great bargain-hunting fodder. For example, I suggested that women’s apparel retailer Christopher & Banks (NYSE: CBK) was far too cheap — based on tangible book value and sure enough, the stock eventually took off like a rocket. In fact, a number of oversold retailers make up the list of leading gainers in the just completed third quarter. In almost every instance, these retailers had traded sharply lower in prior quarters, which is precisely the time that you should be focusing on them. Whether it’s a buyout offer, or simply a… Read More