Zolio Market Commentary

Top-Line Growth for Retailers and the Macro Picture

Top-Line Growth for Retailers and the Macro Picture

| August 20, 2014

2013 was a horrible year for many fashion retailers, despite the great year for stocks as a whole. For teen-focused brands like the Gap (GPS), American Apparel (APP), Aeropostale (ARO), Ambercrombie and Fitch (ANF) and American Eagle Outfitters (AEO), it was a year of falling sales and a contracting market. In the last couple of […]

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The Trend Lasts Until It Stops: Why Daytrading is So Hard

The Trend Lasts Until It Stops: Why Daytrading is So Hard

| August 19, 2014

We have known for a long time that daytraders do not make money. The select few that do are an exception and are handsomely rewarded for their unique talent. As for the rest of us—daytrading is full of risks and opportunities to lose money. There are theoretical reasons for this, and it only takes a […]

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Why the S&P 500 Saw Choppy Action Friday Morning

Why the S&P 500 Saw Choppy Action Friday Morning

| August 8, 2014

Friday morning trading demonstrated a great deal of movement within a tight range, with the S&P 500 (SPY) remaining up for the day but oscillating between 191.73 and 191.08. Many analysts and daytraders were expecting a bearish day; for instance, on the social site Stocktwits.com, bearish sentiment continued to grew from August 1st onwards. The […]

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Why Coach Rose on Declining Revenue and Kors Fell on Growing Revenue

Why Coach Rose on Declining Revenue and Kors Fell on Growing Revenue

| August 5, 2014

Novice investors often use a simple thought process when it comes to buying stocks. The logic goes like this: 1.  A new company has entered a market and is stealing market share from others because buyers prefer their products. 2.  To capitalize on this new company’s growth, I should buy their shares. This logic works […]

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Long-Term Sector Investing: The Case of the Dollar Stores

Long-Term Sector Investing: The Case of the Dollar Stores

| July 30, 2014

Back in 2008, the world seemed to be ending. As banks failed, investors fled to liquidate holdings, unemployment surged, and aggregate demand tanked, there was one sector that many expected to benefit from the seeming financial apocalypse: low-end retailers. While Wal-Mart (WMT) and Costco (COST) were potential beneficiaries, the very low end was expected to […]

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Trulia’s Double Pop: The Market’s Mis-Estimation and “Buying High”

Trulia’s Double Pop: The Market’s Mis-Estimation and “Buying High”

| July 29, 2014

When rumors surfaced of Zillow’s (Z) acquisition of Trulia (TRLA), both stocks immediately jumped, with TRLA 12 points in a matter of minutes. With over a million shares of TRLA shorted, this was a significant problem for a lot of long/short funds, especially as both stocks were favorite targets for a number of reasons. Neither […]

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Pricing Under Armor Post-Earnings

Pricing Under Armor Post-Earnings

| July 24, 2014

Under Armor (UA) is a growth stock in a non-growth market. Sports apparel and footwear have a limited market size that can only grow so far, yet this stock has shown robust top-line growth that has pleased growth investors who have held the stock for a long time. UA did not disappoint this quarter, with […]

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