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Kaltbaum Capital Management President Gary Kaltbaum on what to consider before investing in retail stocks.
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From all this craziness consider that's retailer -- In the S&P 500 are up nearly 25%.
So far this year way outperforming the overall index.
But when it comes to brick and mortar -- pure on line retailers which is the best choice.
-- called lint ball joins me now he's the president call mom cal capital management -- I can't -- -- I think today called -- and that's okay oil get out.
-- show show our viewers a full screen here this is the performance of retail stocks.
Online vs brick and mortar and let me tell you online do -- much much better but you have an insight into this chart hearing what is it.
Well keep in mind Amazon is a huge part of that chart and Amazon you know -- zillions and zillions of sales.
-- -- enough Amazon lost money last quarter in the -- still holding up because.
If they -- big earnings.
But for me when all said and done I like the bricks and mortar we -- so many big winners throughout the years.
Right they are not -- to still think there's enough meat on the bone as far as you know online retail -- -- deal with online and all bricks and mortar have online already.
You don't -- Amazon is a real play here I mean come on that's and that company is unbelievable.
Listen and sales growth it is humongous and I've made money in the stock myself but in our last four quarters earnings have been down eighty to 90% in last quarter they lost money.
If that continues the stock will be eventually in trouble.
But right now the markets betting that once the build out is over it's gonna come down to the bottom line in the stock -- -- okay.
You know time will tell but from -- I'll look at the category killers throughout the years all you've had the coaches of the world that have done really well.
Just recently lululemon.
And now a new one that just came public in the last year Michael court has a 100% earnings growth forty to 50% revenue growth.
Those that I say they are paying -- night and you talk about a category killer they haven't covered every price -- point from low end how high end.
So let me ask you this question Gary -- I think this really gets -- in in terms of retail.
Isn't online vs brick and -- brick and mortar really a distinction without a difference because let's face it.
All of these companies have an online pressing -- -- you can't be a retailer these days without being on line.
Your 100% right every retailer.
Is online now and does a ton of their business online right I can tell you talk about Cyber Monday for -- its site -- month.
But -- -- -- -- all of us are being inundated.
With emails from all these companies are about the great deals and I think a lot of that business has been done of course Monday will be another big day because people like.
Buying on that date for whatever reason so -- -- correct there really isn't a big difference at this point in time you know but going forward.
There -- going to be your JC Penney's and you Kmart that are not being managed well and on the other end of the spectrum some of these discounters like Costco that -- -- being managed well.
They gonna pay up for those stocks we gonna pay down for the JC Penney's that just can't get it right with the new CEO.
Are right that anybody that you see emerging out of this holiday season that will be let Satan.
Apple like.
Possibly apple.
That's the best -- I -- but I can tell -- I walked into.
Two weeks ago I walked in the mall.
At 10 AM on Tuesday the whole bowl is empty he -- -- apple this 300 people in the -- -- probably they're gonna have another good one but as far as who's sticking out right now.
Very much can't tell just yet are well we'll check back in with you to find out what you hear here I know your noses to the grindstone.
In your ears to ground Gary thanks for -- and a and happy holidays happy holiday to you as well now we want to know what.
