The_Value_Investor

Valuing Stocks During a Recession

Nice POV, I think ANF is a fairly bold call though, huge fashion risk, cyclical sector, expensive retailer. I too think stocks are cheap, but I tend to stay away from the retailers that have fashion risk, one name I have always liked in retail is TJX with the off price retailing and same seasons buy/sell they are always selling "fashionable" clothing, buying it on the cheap and keeping a bare bones storefront which keeps costs low. Not to mention, TJX carries ANF & Gap et al, which in these generally tough economic times can lead to shoppers "shopping down" at TJX, Marshalls etc. They are seeing a value proposition for their hard earned dollars. I will also disclose that I have been long TJX since April 2007. I think the comment above about the charts while a valid one, might not apply here, technical analysis and value investing couldn't be more polar opposites. As a value investor I can honestly say I hardly ever look at price charts.