DSW hit my ‘challenged’ alert on a couple of points
- my daughter visited a high-traffic store in Portland metro area looking for fall / winter shoes for our wonderful OR winter. she reported back that the stock levels were terrible and she could not find a thing … selection was very low with empty shelves. this could be a one-store issue or just a bad day, but i do not think that brick / mortar retailers can afford to not have selection for people when they actually walk in the store … a warning!
- valuation while fair, seems to be begging for a Nordstrom-like M&A … i struggle to see the valuation too far north of $20/sh until there are a couple of solid quarters of performance
- the downward risk seems higher than the upward reward over the short / intermediate term
I sold 50% of the position in my daughter’s account, and i sold short a small position in my trading account – which has a ‘way long term’ objective timeline. If the price retreats below $17 again, it would be an interesting trade or opportunistic to add more to daughter’s account.