Kohl's has been one of my cash-flow stocks for the past two years for the following reasons:
1. They have been consistently profitable through tough economic times.
2. The stock chart is a nice, sideways pattern that often gets oversold on some news that really isn't important.
So, when the stock breaks out of a 7-year trading range, part of me is disappointed because this has been a great sideways trading stock for a long time and now it might be encouraging the trend followers to jump on board, which will change the character of the trading.
I'm happy for KSS shareholders since they can now earn some money since KSS has been going sideways for 10 years, but for those of us that can trade in and out of KSS and make 20% a year (which violates the commonly held principle that "buy and hold" is the only way to go), our work will get more difficult. So, I suggest we take a look at Children's Place PLCE as a suitable replacement for KSS. Due diligence will be forthcoming on PLCE. But for now, thank you Kohl's.
Tim 10:15EST 9/18/2014
1. They have been consistently profitable through tough economic times.
2. The stock chart is a nice, sideways pattern that often gets oversold on some news that really isn't important.
So, when the stock breaks out of a 7-year trading range, part of me is disappointed because this has been a great sideways trading stock for a long time and now it might be encouraging the trend followers to jump on board, which will change the character of the trading.
I'm happy for KSS shareholders since they can now earn some money since KSS has been going sideways for 10 years, but for those of us that can trade in and out of KSS and make 20% a year (which violates the commonly held principle that "buy and hold" is the only way to go), our work will get more difficult. So, I suggest we take a look at Children's Place PLCE as a suitable replacement for KSS. Due diligence will be forthcoming on PLCE. But for now, thank you Kohl's.
Tim 10:15EST 9/18/2014
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