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Monday, 26 April 2010 16:52

What We’re Looking For To Go Splat! Part 2

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In my previous post, I gave a quick snapshot of the retail sector macro environment. In this post I will present a list of potential shorts for subscribers as well as the entire universe of companies used for those who don't subscribe.

Below is a list of 141 retail companies whose market cap is greater than$500 million and share price is over $10 that we used to create a universe of potential retail shorts.

[iframe http://spreadsheets.google.com/pub?key=t-O2vhJY5LECZgfPgzCuSMQ&single=true&gid=0&output=html&widget=true 600 600]

Then we:

Eliminated 65 companies with Negative Net Debt and Positive Sales Growth (Quarterly) - 74 left.
Applied various conditions for key parameters to shortlist companies (proprietary), created a rated list out of the aforementioned 74
Selected companies primarily based on:
1. Declining margins
2. Declining sales
3. High debt
Reduced the list to 4 companies and scoured the footnotes, addenda and fine print to see what we could dig up. This short list is available to subscribers here: . I took the liberty of including short interest and days to cover to assist in short squeeze management for those that don't use options. We will choose one of these four to perform a full blown forensic analysis. Membership input, feedback and suggestions are quite welcome. Feel free to email me.
1. Interested parties may click here to subscribe.

For those that don't subscribe, some of our rejects may be of interest...
[iframe http://spreadsheets.google.com/pub?key=tU199qjSINkb6wiCrUKWbqg&single=true&gid=0&output=html&widget=true 600 400]

Subscribers are urged to peruse our shortlist and delve into our stated reasons for shortlisting each - File Icon Retail Short Analysis.

Professional and Institutional Subscribers have access to the very wide swath of fundamental data on the entire universe of retail stocks considered, as well as 48 quarters of personal consumption data across many categories - File Icon Retail Sector Shortlisting_042110 - Pro Addendum.