When we initiated coverage on Ascena Retail Group (NASDAQ:ASNA) we told you plainly that the stock was to be avoided. We have been watching the name for over a year but are of the opinion that despite the company actually having an impressive portfolio as a leading specialty retailer offering clothing, shoes and accessories, it is a dead money stock. Despite the amazing brands in this company’s portfolio, like Lane Bryant and Maurice’s, the company just has not delivered. As we believe this stock is dead money here, we are urging our readers not to chase the stock lower.

It is dead money

Although we are rooting for the company, performance is what matters. Investors, namely those looking for a speculative buy or chasing a mean reversion, could be tempted to dive into this dead money stock which looks to test new lows

Let us be clear. Investors have lost bundles chasing this stock down every point over the last few years. Do not gamble here.

The company is facing ever increasing competition from similar retailers, big box stores and, of course, e-commerce. It will take a meaningful turnaround in operations for the stock to get moving again.

While we realize people are going to chase this for a dead-cat bounce, we urge investors to steer clear. The stock has been a terrible performer after all of our sell calls and looks to be falling back under $2 a share. There are so many…..CLICK TO FINISH ARTICLE

Your input is required

Disagree, or have your own opinion? SUBMIT AN ARTICLE TODAY

Feel like commenting? Do you want to join a community of investors and start making money, for free? Then REGISTER now:

We want you to join our community

Benefits of signing up for a FREE membership now:

-No more costly delays in waiting for material

-Dozens of publications per week, including news coverage, earnings commentary, analysis, politics, and more

-Access to special guest contributions, including from WSJ, CNBC, and prolific independent authors

Ability to comment on articles

Access to our weekly newsletter

-Publish your own opinion/analysis

CLICK HERE: All you have to do is register, and join the community today. 

Thank you for your readership, and for your loyalty.




Please Like And Share Our Content!