Anyone tempted by Ralph Lauren?

Discussion in 'Penny Stocks' started by Onionman, Feb 4, 2015.

  1. Onionman

    Onionman Senior Investor

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    The stock's off another 18% and the stock chart looks pretty shocking in terms of falling off a cliff.

    But everything kind of has its price at some point. Would you be tempted to look at it now or to wait for it to settle? There's bound to be a bounce, even if it is a dead cat bounce, but the question is when.
     
  2. crimsonghost747

    crimsonghost747 Senior Investor

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    Ahh the falling knife! Got to be careful when you try to grab it. I personally believe that accurately predicting the bottom is not possible and if anyone manages to catch the very bottom them it's more due to pure luck. So I would suggest starting buys a little early and continuing buying in small quantities until the price rebounds. This way you make sure you don't miss it completely while also benefitting from the lower prices if the stock keeps sinking after your first buy.
     
  3. Onionman

    Onionman Senior Investor

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    I would tend to agree - it's a very risky game trying to call the bottom. Average down and play the longer game might be the strategy here.
     
  4. Hedonologist

    Hedonologist Well-Known Member

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    I would. While I agree with crimsonghost that it's hard to predict the bottom, you can also wait too long. I think that it's undervalued, so even if you're not getting the BEST price for it, it's still a worthwhile investment.
     
  5. petesede

    petesede Guest

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    yeah, these type of things are so hard to predict. I personally do not like this stock at all... but in similar situations, I have waited until the company has bottomed and held at a price above that bottom for at least a few weeks.
     
  6. crimsonghost747

    crimsonghost747 Senior Investor

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    Yeah I'm not big on these "luxury" brands. They tend to be overvalued in the stock market just as their products are overpriced in real stores.
     
  7. Gelsemium

    Gelsemium Senior Investor

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    If the prices are artificial, meaning, that there is nothing real to sustain the value of the brand it can simply sink and sink. At the same time is tempting to buy it at a low...
     
  8. Rosyrain

    Rosyrain Senior Investor

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    I would be afraid that someday the Ralph Lauren brand will end up in Walmart or something like that and lose a lot of value. I have seen some good brands sell out before. Besides that, I do not know many people who wear Ralph Lauren anymore so it is not as popular as it once was.
     
  9. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I'm always skittish with fashion-related industries and companies. People are very fickle - just look at what happened with Crocs as an example.
     
  10. crimsonghost747

    crimsonghost747 Senior Investor

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    I own shares of two different fashion related companies. Both are really small though. And yeah it's pretty insane... you never know what people want. Quite a lot of volatility there based on recent trends and you really do need to keep a close eye on what is happening.
     

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