Tailored Brands channel break, double bottom, short squeeze
Tailored Brands has been in a *steep* decline since its high of 35.86 in May 2018. It fell all the way to just above 5.00 this month. Wow.
However, I see signs of reversal.
Firstly, we've broken out of the downward parallel channel that the stock inhabited for a year.
Secondly, We've formed what looks like a double bottom pattern.
Thirdly, the stock's fundamentals are starting to look better. Its 3.82 P/E is attractive, and its forward P/E of 3.07 is even better. In the last 3 months, insiders purchased a net 143,015 shares-- much more than the net 36,253 shares they purchased in the 9 months previous. TLRD beat estimates on its last earnings report, and it said encouraging things on its last conference call about reducing China exposure. Plus, there's news this weekend of renewed trade talks between the US and China.
As a bonus, short interest is 35.47% of float, which makes this stock a good candidate for a short squeeze. If the year-long trend changes and the price begins to rise, it could do so very quickly.
However, I see signs of reversal.
Firstly, we've broken out of the downward parallel channel that the stock inhabited for a year.
Secondly, We've formed what looks like a double bottom pattern.
Thirdly, the stock's fundamentals are starting to look better. Its 3.82 P/E is attractive, and its forward P/E of 3.07 is even better. In the last 3 months, insiders purchased a net 143,015 shares-- much more than the net 36,253 shares they purchased in the 9 months previous. TLRD beat estimates on its last earnings report, and it said encouraging things on its last conference call about reducing China exposure. Plus, there's news this weekend of renewed trade talks between the US and China.
As a bonus, short interest is 35.47% of float, which makes this stock a good candidate for a short squeeze. If the year-long trend changes and the price begins to rise, it could do so very quickly.
評論:
Drop out of green channel today but near trendline resistance.
