COST: short some additional share of Costco to everage up my short positions.
Forward P/E at around 55 remained high for retail businesses and I foresee tariffs effect is not fully felt within the economy. Lots of products from the retail store would be imported and those will be impacted.
COST will need to absorb the increased of tariffs and/or alienating its own retail customers with price increases when passing down the tariffs hike to consumers.
Likely to have more negative news outlook then positive in coming weeks and next earnings Forecasts.
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- fuzzyx·07-09Sounds like a calculated move. With that P/E ratio, it might just be a ticking bomb.LikeReport
- RandyHall·07-09Great strategy, I love the thought process! [Cool]LikeReport
- DeltaDrift·07-09Nice position to trade at tariff momentsLikeReport