Scott Stewart has been trading for decades. He has acted as an analyst and educator on the stock market for just as long. As your Rich Dad's Weekly Cash Flow analyst, Scott works tirelessly to ensure you know everything you need to do when entering into new positions, and adjusting trades as you go along....
Discretionary stocks perform well in a world of limited competition and strong consumer demand. Unfortunately, neither situation prevails today. Recession fears have weakened demand for products that aren’t consumer staples and can be put off for another time. Jim and Scott identify one major bedding supplier who faces headwinds from low-cost competition and an economic slowdown that puts a lid on growth and gross revenue.
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.
Many healthcare providers are caught in the crossfire of overleverage, uncertainty about Medicare and Medicaid reimbursements, and the possible end of ObamaCare. With the economy slowing down and the future of healthcare a major issue in the next election, stocks in this sector are vulnerable. Today, Jim and Scott identify one major healthcare provider poised for substantial declines due to both internal weak cash flow problems as well as the uncertainty of future government subsidies.