Kevin Wong
05-23-2007, 05:43 AM
I bought Big Lots! (BIG) about a week ago and I'm hopeful that beyond their good fundamentals and decent technicals, I was drawn on the speculation that consumers will look for cheaper alternatives for goods in times when money is tight. I thought about expanding my idea of discount goods after seeing Shoe Pavilion (SHOE) take a huge hit after missing earnings due to construction.
I thought about their rival Discount Shoe Warehouse (DSW) and decided to see how they were doing. Based on fundies, DSW is a hands down better buy. Based on technicals, SHOE has a much larger upside...both have a low MACD and RSI...just waiting for the curve to reverse.
My evaluation is that SHOE has a chance for a huge reward, but a moderately-high risk. DSW on the hand has a chance for a moderate reward and moderate to low risk. Anyone wanna lend their opinion? Please don't take this post as a recommendation. I don't think now is the time to buy either, but rather two stocks to watch.
I thought about their rival Discount Shoe Warehouse (DSW) and decided to see how they were doing. Based on fundies, DSW is a hands down better buy. Based on technicals, SHOE has a much larger upside...both have a low MACD and RSI...just waiting for the curve to reverse.
My evaluation is that SHOE has a chance for a huge reward, but a moderately-high risk. DSW on the hand has a chance for a moderate reward and moderate to low risk. Anyone wanna lend their opinion? Please don't take this post as a recommendation. I don't think now is the time to buy either, but rather two stocks to watch.