THERE ARE WINNERS IN A SLOPPY ECONOMY - By Charles Payne

Aug. 23, 2013 10:34 AM ET
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Long/Short Equity, Portfolio Strategy

Contributor Since 2009

Wall Street Strategies has been providing independent stock market research since 1991 to individual, retail and institutional clients through a balanced approach to investing and trading. Charles Payne, our founder and chief analyst, is routinely sought after for his stock market, political, and general opinions by several prestigious news organizations. Currently, Mr. Payne is a contributor to the Fox News Network and Fox Business Network. He also hosts his own radio show on KFIAM 640 every Saturday from 2-4pm PST. Mr. Payne recently released his first book entitled Be Smart Act Fast Get Rich. Our all-star analytical team is called first when the media needs to know. We are regularly featured on several well respected finance-oriented radio and television programs such as Fox, CNBC, BNN, WSJ to name a few and widely recognized in the media as a leaders in the analyst community. In addition, Wall Street Strategies is part of Thomson-Reuters Consensus Estimates. Brian Sozzi is an equity research analyst specializing in the softline/hardline goods sectors of the retail industry for Wall Street Strategies Inc. Mr. Sozzi graduated Summa Cum Laude from Dowling College, receiving his Bachelors of Business Administration with a concentration in Finance and Accounting. Routinely sought after as a trusted point of reference for opinions and insight on the global economy and retail sector stock evaluation, Mr. Sozzi is a frequent on air contributor to CNBC, Fox Business Network, and Bloomberg, and is cited regularly by online/print publications that include Forbes, Bloomberg, The Wall Street Journal, Thestreet.com, CBS Marketwatch, Reuters, Seekingalpha, Associated Press, Crain’s NY Business, Fortune, Barron’s, AOL Finance, and the Financial Times. In 2009, Mr. Sozzi became recognized by Starmine as a top-ranked equity research analyst for stocks under coverage in such categories as EPS Estimate Accuracy and Industry Excess Return. Carlos Guillen is an Equity Research Analyst providing coverage of the technology sector for Wall Street Strategies, Inc. Mr. Guillen has had experience working in both the sell side and the buy side. Prior to working as an analyst, he was a Design Engineer for Lambda Electronics. Mr. Guillen holds an M.B.A. from NYU’s Stern School of Business, and he has a B.S. in Electrical Engineering from Manhattan College. David Urani is a research analyst with concentrations on the homebuilding, staffing, medical devices, and logistical services industries. Along with providing institutional clients with up-to-date reports of individual stocks within his industry coverage, David assists the rest of the Wall Street Strategies research desk with timely analysis of vital economic data. A graduate of the A.B. Freeman School of Business at Tulane University, David earned a Bachelor of Science in Management while majoring in finance. With prior training experience running small businesses, he has an eye for key fundamentals that keep Companies running efficiently. David’s insight has been featured in several outside sources, including the Fox Business Network, MarketWatch, and SeekingAlpha. Carlos Guillen is an Equity Research Analyst providing coverage of the technology sector for Wall Street Strategies, Inc. Mr. Guillen has had experience working in both the sell side and the buy side. Prior to working as an analyst, he was a Design Engineer for Lambda Electronics. Mr. Guillen holds an M.B.A. from NYU’s Stern School of Business, and he has a B.S. in Electrical Engineering from Manhattan College.

We're still not sure if it was a fat finger trade, a terrorist attack, poor plumbing or an attempt to stop massive selling in a household name, but the flash freeze that halted trading in NASDAQ stocks was just another wacky reason for people to not have confidence in the market. I've seen the $250 million building in New Jersey with no signs, high walls, and very little traffic that is suppose to handle a doomsday scenario, so I'm not surprised these things happen but wish there was more transparency and honesty-we will never know what happened yesterday.

I can only hope it doesn't deter even more would-be investors. By the same token, it would be nice to reel in all the antics of the big boys picking up piles of pennies that add up to billions without breaking a sweat. If they had to run in front of steamrollers for those pennies that would be fantastic, but they collect them while chilling on the beach in the Hamptons. All those trades and all that technologic al prowess to pick off orders from regular folks means more and more piping and speed without caution signs or speed bumps. It means pile ups that result in the system being down for a couple of hours.

I'm not sure if it's a good thing or a sign of apathy that the market rallied after the latest mishap of a major exchange. I'm glad we didn't crash but wonder if we have become a nation okay with broken government, broken promises, broken dreams, and broken institutions. In the meantime, the economic realities were revealed in this week's retail earnings results and guidance. On Monday morning, I said this week would be about retail and it has been, sadly. Teen retailers suffered most, but then again thus far zero net summer jobs have materialized for the 16 to 19 year old segment of the population.

By the same token we saw some winners, underscoring that even a weak $16.0 trillion economy offers chances for winners and losers.

There is one retailer that's not public yet but is an amazing winner and a reminder of the greatness of America, belief in God, and embracing the evolving cultures that make up our melting pot. These days, however, the company is the target of those that don't understand capitalism, or understand it but don't appreciate it.

In 1981 Do Won Chang arrived in Los Angeles from South Korea; he was 27 years old and eager to embrace the land of milk and honey. Three years later he and his wife opened a 900 square foot store selling trendy Korean styles to locals. I'm sure their faith as Christians helped them overcome early obstacles as their gratitude is reflected with John 3:16 printed on every shopping bag at Forever 21. This week the company with 27,000 employees became a target because of this memo.

Obamacare Realities

Retailers have to cut hours to address Draconian rules of the new healthcare law. Even though the employer mandate was pushed off a year, many businesses continue to execute previous plans. It's not just businesses, however. The University of Virginia is cutting out spouses from coverage, just like UPS which will save $62.0 million. Nonetheless there has been a call to boycott Forever 21, which I suspect will fall flat like all boycotts rooted in envy and hate.

The fact is the owner and his wife are now worth $4.0 billion, and those that think that wealth only came from public roads want them to share the wealth even more than the thousands of jobs they've created.

https://www.wstreet.com/user/register.asp?source=3

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