Mexx

Five Retailers for Falling Gas Prices

Cheaper oil will not solve for the real estate crisis we are currently in. I agree with 2 lakes, there are broader issues at hand that may keep people out of the stores for some time to come. I am not convinced we have hit consumer spending bottoms, nor I think that these stocks just because they have dropped more than 50% can be considered cheap.
> CMG is far from cheap with a forward P/E of 24 and a EV/EBITDA of 13.25
> DKS is probably achieving cheap status and has a solid business model and OK balance sheet. But much of its diversified inventory makes it susceptible to consumer discretionary spending. I would consider buying if it drops another 15-20% as a margin of safety.
> SHLD - There is not much of retail business model here. The retail experience sucks and if you've been to a Kmart lately you'd think you just walked in to a Bloomies because it's so pricey. Lampert is clearly way above his head on this one, he is not a retailer. The real estate angle on this one is not good enough reason to buy.
> KONA - A want to sell everything sushi/pizza/burger/tac... with a twist of hawaiian restaurant. No thanks. BWLD yes.
> JMBA - Total speculation. Put your Vegas money on this one and be ready to hold for 5 years.