Enough is enough. Two weeks after doubling my stake in Foot Locker (NYSE:FL) and having a standing order to complete the entire position at $49, I opened my screeners to find the position completed today at a MUCH lower price than I wanted to pay. Folks, the stock is one of the most hated in the market and for what? That one of its largest suppliers in Nike (NYSE:NKE) might sell more online? Really? Today the stock dipped under $45 at its lowest because an analyst “thinks” Nike “could be” close to selling on Amazon (NASDAQ:AMZN). News flash: you can already buy Nikes on Amazon. Now look, I get it. The company’s Q1 which I will touch on was not stellar. It deserved to see some selling. But we are now at the point of ridiculous and I am circling the wagons here. Be greedy when others are fearful? If there was ever a time where this saying was true, it would have to be now.
Why? Is all of retail going to fall off the Earth because people buy on Amazon? I mean, I use Amazon, a lot. But why then are my local malls so full I cannot find a parking spot on a Monday night? I talked to staff at my local Foot Locker, and other than there not having a major release for a few weeks, traffic is strong. Sure one store doesn’t make a trend, but anecdotal evidence is still a positive. To me, a stock falling from $79 to $45 in just over two months is obscene. That is a 43% decline. Two-fifths of a company’s market share in stock that was fairly priced at best has been wiped out. We are at prices not seen since early 2014. It is an opportunity rarely seen. Why am I willing to put my money here?
It isn’t pride. It is about………………READ MORE