New Crash Indicator Buy: High Overhead Spells Trouble for this Brick and Mortar Luxury Retailer

By Jim Rickards and Scott StewartPosted August 27, 2019

Many retailers have suffered from both margin compression and a delayed entry into online sales. Also, reduced margins are a byproduct of global deflationary trends and the inability to push through price increases to customers. Today, Jim and Scott identify one high end retailer that has seen margins decrease due to both a late entry into internet retailing as well as high overhead from their bricks and mortar business plan. Along with supply chain uncertainty from a prolonged trade war, this company is a good candidate for a “flatlining” stock price.

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Jim Rickards

James G. Rickards is the editor of Strategic Intelligence, Crash Speculator, Gold Speculator and Tactical Currency Profits. An Ex-CIA insider, he is also an American lawyer, economist, government advisor and investment banker with 40 years of experience working in capital markets on Wall Street. He was the principal negotiator of the...

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Sell Alert: Exit Your AMC June Put Spread

By Dan AmossPosted May 28, 2021

A highly improbable reinflation of a second AMC bubble has emerged which speaks to how fragile and distorted the financial markets have become that this could happen again. As a result, the long leg of our put spread on AMC is likely to expire worthless on June 18. So, we recommend exiting both legs of this trade today.

Trade Alert: Bad Timing Puts Pressure On This Oil Producer

By Jim RickardsPosted October 6, 2020

A slow economic recovery from the pandemic-related recession along with deflationary factors such as higher savings rates, slowing population growth and excessive debt loads are all headwinds for higher oil prices. Jim and Scott target this oil producer as the best way to profit as the combination of weak demand for oil and a large debt load will send its stock price plummeting.

Trade Alert: Rising Costs And Competition Puts Pressure On This Restaurant Chain

By Jim RickardsPosted April 20, 2021

Rising costs and increased competition spell trouble for restaurants who are still struggling with lockdown mandates and lower foot traffic as consumers remain cautious with pandemic worries. Today, Jim and Dan target this leading restaurant chain as these headwinds to growth puts pressure on its stock price.

THC Expiration Alert

By Scott StewartPosted August 30, 2019

Our THC trade is expiring today. No further action is needed on this position.

Sell Alert: Take an 88% Gain on Royal Caribbean Put Spread

By Dan AmossPosted July 19, 2021

Thanks to the constant need to refresh its ship fleet to keep customers happy in a competitive business, RCL is on a capital spending treadmill. It has been a persistent free cash flow burner. We are 20 calendar days into the trade, which is exactly 25% of the 80 days between trade entry and expiration. We have gained nearly 50% of our maximum potential profit (88%, versus a maximum 178%), so it makes sense to sell now.

Buy Alert: Revisting This Cruise Ship Operator As New Reality Hits Hard

By Jim RickardsPosted June 29, 2021

The travel industry is counting on pent-up demand to recover from the past year of being shut down due to the pandemic. But this wishful thinking is running headlong into the reality of a slow recovery, even with most of the pandemic in the rear-view mirror. Jim and Dan target this leading cruise ship operator as changes in consumer behavior and residual fears of cruise ship COVID contamination will result in declining profits and a stock price correction.