Consumer Stock #1
Pacific Sunwear (PSUN)
The problem with using consumer confidence as a guide to buy stocks is that consumers tend to be fickle. Nowhere is that more
true than in the clothing space, especially the teeny bopper clothing space. Fall out of favor with the younger crowd, and your
business can be destroyed. Poor management decisions don’t help, either.
Pacific Sunwear (PSUN) lost its mojo and has yet to find its way. Earlier this
year, shares bottomed at a price below $1 per share. Since that time, PSUN has been on fire more than tripling in value. And then
last week, the company announced another quarterly loss and drop in same-store sales.
Granted, PSUN beat the number, but playing that game does little for long-term sustainability of value. I would take some money
off the table here–PSUN is due for a pull-back.
5 Consumer Stocks to Sell Now
Article printed from InvestorPlace Media, http://investorplace.com/2009/05/consumer-stocks-to-sell/.
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