Home Forums Members Forum Range bound, gearing up to breakout

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  • Sean HymanSean Hyman
    Keymaster
    Post count: 3300

    Both BBBY and SLX are range bound, above their moving averages (on their daily charts) and poised to most likely breakout higher once they complete those ranges.

    AvatarRandall Beam
    Participant
    Post count: 51

    Do you think BBBY will be clear for it’s upward movement, once it gets to $13.30. Would you feel good about it as low as $12.94? I am wanting to in a buy order, once I feel confident BBBY has cleared it’s resistance (rather than get caught in it’s consolidation).

    Sean HymanSean Hyman
    Keymaster
    Post count: 3300

    I’m not encouraging re-entry into it for someone who’s exited already, due to its high debt and still being in a turnaround situation.

    These are the three most likely scenarios.

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    AvatarRandall Beam
    Participant
    Post count: 51

    Thanks for the advice – I will follow it. I believe they are on a good path to recovery; but was concerned that they might bounce up & down while the market was bouncing up & down at the same time; and wondered about the length of time that that might required for them to right the ship.

    In general; how would we know that a company in your portfolio is safe to get back into; if we don’t currently have a position. I remembered that you had stated that you had some concern about their cash position at one time; but since, I had gotten the impression that it sounded like you had warmed backup to them a little.

    I also had read that they were raising money thru the issuance of some notes & thought they might have also received some stimulus money & refinanced any outstanding obligations with low interest money. Since the price was well with in your averaging down points, I assumed it was safe to go back into the water.

    So my general assumption (which can cause a mess) was that if the price is within your buying guidelines & if you expect the stock to break out, then I would be good to go. So is this ok, as a general assumption & that BBBY is just an exception, or should I never make this assumption?

    I pray that you have the perfect vacation & that God renews your strength as an eagle, as I know that all of your activities (between your business, your normal personal life & closing out your grandfather’s affairs) has probably left you a little depleted.

    Thanks again for all that you do & for blessing your member’s lives.

    Sean HymanSean Hyman
    Keymaster
    Post count: 3300

    No, I’ve never had a concern about their cash position. They’ve got a billion dollars in cash. It’s their debt load that’s too high and their earnings have to turn around. Their cash just buys them some time.

    You’d know by seeing their fundamentals on Yahoo Finance in the Statistics page. That’s where it shows its detailed fundamentals. If they’re strong enough, they’re ok to re-enter at some point. But in this case, I would not, due to their debt load.

    Never make assumptions. Check fundamentals before re-entries. Fundamentals are the reason any of them have a great shot at success in the first place.

    Thanks for the prayers.

    BekkaBekka
    Participant
    Post count: 222

    Its market cap is approx. 1.5 Billion and its debt is approx. 4 Billion. Too much debt. That’s a main reason Sean doesn’t advise getting into BBBY at this time. Those who bought in at its first mention on this site have had it since April 2018, almost 2.5 years. HOpe this helps answer your question.

    Sean HymanSean Hyman
    Keymaster
    Post count: 3300

    Correct. Exactly. Thanks for lending a hand, Bekka.

    Signing off for now. Almost 1am here. Leaving out at 6am for Destin.

    Sean HymanSean Hyman
    Moderator
    Post count: 2766

    SLX looks to be attempting a breakout higher.

    Sean HymanSean Hyman
    Moderator
    Post count: 2766

    SLX looks to be attempting a breakout higher.

    Sean HymanSean Hyman
    Moderator
    Post count: 2766

    If so, $35-$36, is next near-term resistance.

    Sean HymanSean Hyman
    Keymaster
    Post count: 3300

    SLX breakout attempt. The coming days to weeks could be great for it.

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    Sean HymanSean Hyman
    Moderator
    Post count: 2766

    SLX continues to breakout higher.

    Sean HymanSean Hyman
    Moderator
    Post count: 2766

    SLX continuing to head higher!

    Sean HymanSean Hyman
    Keymaster
    Post count: 3300

    The SLX breakout higher. The Fed wanting higher inflation is helping this one, I believe. Higher steel prices can help it.

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    Sean HymanSean Hyman
    Keymaster
    Post count: 3300

    SLX and FXY continue their breakouts this morning.

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