$SHLD $BONT $DXLG $BEBE $PERF PART FIVE / 4 Retai
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Posted On: 05/08/2017 11:48:50 AM
$SHLD $BONT $DXLG $BEBE $PERF PART FIVE / 4 Retail Stocks On The Verge Of Bankruptcy
By Josh Enomoto, InvestorPlace Contributor
https://dynamicwealthreport.com/4-retail-stoc...ankruptcy/
Retail Stocks Near Bankruptcy: Perfumania (PERF)
Perfume and fragrances distributor Perfumania Holdings, Inc. (NASDAQ
ERF) is in big trouble. This is quite a remarkable statement considering that we’re discussing retail stocks.
For PERF stock, it has a twofold problem. First, the fashion-related industry has been flat for three years. The last time this sector experienced a horizontal consolidation, it acted as a harbinger to the Great Recession. I’m not suggesting a repeat, but it’s worth a reminder.
Second, department stores represent the most appropriate place for Perfumania products. However, sentiment for such stores are dying. In fact, it’s one of the few sectors which failed to recover from the 2008 financial collapse. While I’m not in the coroner business, I think we’ve passed the point of no return for most retail stocks. If PERF stock should avoid bankruptcy this year, they would only be avoiding the inevitable.
E-commerce establishments like Amazon.com, Inc. (NASDAQ:AMZN) will eat them alive in the online sphere. Low-price leaders will hurt them in the volume game. The higher-end stuff is simply too competitive. At a price tag of basically $1, the writing is on the wall. PERF has lost 30% year-to-date, and more than 63% in 365 days.
I’m all for a good discount, but buying PERF stock now is just a quick trip to bankruptcy court.
Note: Josh Enomoto is the author of this article. As of this writing, Josh did not hold a position in any of the aforementioned securities.
By Josh Enomoto, InvestorPlace Contributor
https://dynamicwealthreport.com/4-retail-stoc...ankruptcy/
Retail Stocks Near Bankruptcy: Perfumania (PERF)
Perfume and fragrances distributor Perfumania Holdings, Inc. (NASDAQ
ERF) is in big trouble. This is quite a remarkable statement considering that we’re discussing retail stocks. For PERF stock, it has a twofold problem. First, the fashion-related industry has been flat for three years. The last time this sector experienced a horizontal consolidation, it acted as a harbinger to the Great Recession. I’m not suggesting a repeat, but it’s worth a reminder.
Second, department stores represent the most appropriate place for Perfumania products. However, sentiment for such stores are dying. In fact, it’s one of the few sectors which failed to recover from the 2008 financial collapse. While I’m not in the coroner business, I think we’ve passed the point of no return for most retail stocks. If PERF stock should avoid bankruptcy this year, they would only be avoiding the inevitable.
E-commerce establishments like Amazon.com, Inc. (NASDAQ:AMZN) will eat them alive in the online sphere. Low-price leaders will hurt them in the volume game. The higher-end stuff is simply too competitive. At a price tag of basically $1, the writing is on the wall. PERF has lost 30% year-to-date, and more than 63% in 365 days.
I’m all for a good discount, but buying PERF stock now is just a quick trip to bankruptcy court.
Note: Josh Enomoto is the author of this article. As of this writing, Josh did not hold a position in any of the aforementioned securities.
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