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IBDvalueinvestin (99.66)

Buffett and Soros Are Buying Retail. Why Aren't You?

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November 20, 2009 – Comments (4) | RELATED TICKERS: GES , WMT , ARO

Buffett and Soros Are Buying Retail. Why Aren't You?

This is a question on a Blog on Motley. Well here is the answer,

The option expiration manipulators have caused many retailers to crash in the last 6 days. Doing the opposite of Buffett & Soros. 

One example is GES which has fallen for 6 straight days to $36.91 or same level it was back 2 months ago in Sept. so basically you have made nothing on GES now for last 2 months.

 

4 Comments – Post Your Own

#1) On November 20, 2009 at 8:26 AM, IBDvalueinvestin (99.66) wrote:

Watch stocks gap open lower and then recover all day and very possibly go green on the day. This week has been a typical options expiration manipulation week. You just have to know the game being played to be able to come out front.

I have been watching this game being played for over 15 years now.

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#2) On November 20, 2009 at 8:30 AM, russiangambit (29.40) wrote:

Buffet and Soros bought WMT, it is not the same as M and JCP. To me this is pretty defensive move, where buying a department store retailer is betting on a sharp recovery.

As for the retailers falling -  do you think P/E of 20 in the environment of rising unemployement and missed sales forecasts has nothing to do with it?

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#3) On November 20, 2009 at 8:41 AM, IBDvalueinvestin (99.66) wrote:

Russian GES does not deserve to go down 6 straight days, Its never missed forecasts. PE is 16, forward PE 14

http://finance.yahoo.com/q/ae?s=GES

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#4) On November 20, 2009 at 9:39 AM, JakilaTheHun (99.93) wrote:

I agree with russiangambit.  Soros and Buffett buying WMT is not a bullish bet on retail.  Rather, it's a conservative bet against risk. 

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