|
Related Topics
|
|
Category: Tesla, Stitch Fix and GameStop
Date: 25 January 2021 Stock price of Stitch Fix: $99.03 Stock price of GameStop: $94.78 Stock price of Tesla: $865.59 We take a look at three stocks one should not buy right now. Especially if you are a Robin Hood investor and don't know to much about the markets and what makes it tick. Chasing profits by piling into stocks that shows significant movements is not a sustainable investment strategy.
|
|
|
..all three of these stocks have seen significant stock price gains, none of it warranted for any of the three stocks. And that's why we are recommending that investors stay far far away from these stocks, especially rookie investors on platforms such as Robin Hood. "
More About Tesla
Hamilton Beach Brands is a leading designer, marketer and distributor of a wide range of branded small electric household and specialty housewares appliances, as well as commercial products for restaurants, fast food chains, bars and hotels. The Company’s owned consumer brands include Hamilton Beach®, Hamilton Beach® Professional, Proctor Silex®, Weston® field-to-table and farm-to-table food preparation equipment, TrueAir® air purifiers, and BrightlineTM personal care products including sonic rechargeable toothbrushes. Hamilton Beach licenses the brands for Wolf Gourmet® countertop appliances and CHI® premium garment care products. Hamilton Beach markets the Bartesian® premium cocktail delivery system through an exclusive multiyear agreement. Commercial products are marketed under the brands Hamilton Beach Commercial® and Proctor Silex Commercial®.
More About Stitch Fix
Stitch Fix was inspired by the vision of a client-first, client-centric new way of retail. What people buy and wear matters. When we serve our clients well, we help them discover and define their styles, we find jeans that fit and flatter their bodies, we reduce their anxiety and stress when getting ready in the morning, we give them confidence in job interviews and on first dates, and we give them time back in their lives to invest in themselves or spend with their families. Most of all, we are fortunate to play a small part in our clients looking, feeling, and ultimately being their best selves. We are reinventing the shopping experience by delivering one-to-one personalization to our clients through the combination of data science and human judgment. This combination drives a better client experience and a more powerful business model than either element could deliver independently.
Since our founding in 2011, we have helped millions of men, women, and kids discover and buy what they love through personalized shipments of apparel, shoes, and accessories, hand-selected by Stitch Fix stylists and delivered to our clients’ homes. We call each of these shipments a Fix. Clients can choose to schedule automatic shipments or order a Fix on demand after they fill out a style profile on our website or mobile app. For each Fix, we charge clients a styling fee that is credited toward items they purchase. Alternatively, select U.S. clients may purchase an annual Style Pass, which offers unlimited styling for the year for a $49 fee that is also credited towards items they purchase. After receiving a Fix, our clients purchase the items they want to keep and return the other items, if any, at no additional charge. In addition, our Extras feature allows clients to select items such as socks, bras, underwear, and other intimates that are then added to the items their stylist selects for their Fix. Stitch Fix was founded with a focus on Women’s apparel. In our first few years, we were able to gain a deep understanding of our clients and merchandise and build the capability to listen to our clients, respond to feedback, and deliver the experience of personalization. More recently, we have extended those capabilities into Petite, Maternity, Men’s, Plus, and Kids apparel, as well as shoes and accessories.
Our stylists leverage our data science through a custom-built, web-based styling application that provides recommendations from our broad selection of merchandise. Our stylists then apply their judgment to select what they believe to be the best items for each Fix. Our stylists provide a personal touch, offer styling advice and context to each item selected, and help us develop long-term relationships with our clients. We offer merchandise across multiple price points and styles from established and emerging brands, as well as our own private labels, which we call Exclusive Brands. Many of our brand partners also design and supply items exclusively for our clients. In May 2019, we launched our service in the United Kingdom.
Since our founding in 2011, we have helped millions of men, women, and kids discover and buy what they love through personalized shipments of apparel, shoes, and accessories, hand-selected by Stitch Fix stylists and delivered to our clients’ homes. We call each of these shipments a Fix. Clients can choose to schedule automatic shipments or order a Fix on demand after they fill out a style profile on our website or mobile app. For each Fix, we charge clients a styling fee that is credited toward items they purchase. Alternatively, select U.S. clients may purchase an annual Style Pass, which offers unlimited styling for the year for a $49 fee that is also credited towards items they purchase. After receiving a Fix, our clients purchase the items they want to keep and return the other items, if any, at no additional charge. In addition, our Extras feature allows clients to select items such as socks, bras, underwear, and other intimates that are then added to the items their stylist selects for their Fix. Stitch Fix was founded with a focus on Women’s apparel. In our first few years, we were able to gain a deep understanding of our clients and merchandise and build the capability to listen to our clients, respond to feedback, and deliver the experience of personalization. More recently, we have extended those capabilities into Petite, Maternity, Men’s, Plus, and Kids apparel, as well as shoes and accessories.
Our stylists leverage our data science through a custom-built, web-based styling application that provides recommendations from our broad selection of merchandise. Our stylists then apply their judgment to select what they believe to be the best items for each Fix. Our stylists provide a personal touch, offer styling advice and context to each item selected, and help us develop long-term relationships with our clients. We offer merchandise across multiple price points and styles from established and emerging brands, as well as our own private labels, which we call Exclusive Brands. Many of our brand partners also design and supply items exclusively for our clients. In May 2019, we launched our service in the United Kingdom.
More About GameStop
GameStop Corp., a Fortune 500 company headquartered in Grapevine, Texas, is a digital-first omni-channel retailer, offering games and entertainment products in its over 5,000 stores and comprehensive e-Commerce properties across 10 countries. GameStop, through its family of brands offers the best selection of new and pre-owned video gaming consoles, accessories and video game titles, in both physical and digital formats. GameStop also offers fans a wide variety of POP! vinyl figures, collectibles, board games and more. Through GameStop’s unique buy-sell-trade program, gamers can trade in video game consoles, games, and accessories, as well as consumer electronics for cash or in-store credit. The company's consumer product network also includes www.gamestop.com and Game Informer® magazine, the world's leading print and digital video game publication.
Stock price performance of the three overvalued stocks over the last year
The image below shows the stock price history of Tesla (TSLA), GameStop (GME) and Stitch Fix (SFIX) over the last 12 months, And as the image shows all three of these stocks have seen significant stock price gains, none of it warranted for any of the three stocks. And that's why we are recommending that investors stay far far away from these stocks, especially rookie investors on platforms such as Robin Hood. As there is significant risk of large scale capital losses.
The stock price surge in GameStop, Tesla and Stitch Fix
The summary below shows the stock price returns provided by Tesla, Stitch Fix and GameStop over the last 12 months:
- GameStop (GME): 2693%
- Tesla (TSLA): 567%
- Stitch Fix (SFIX): 338.8%
Why you should avoid these stocks?
So you probably wonder why you shouldn't follow the herd and pile into these stocks that have seen such amazing gains over the last 12 months? Well lets take a look at why you should avoid them.
Tesla (TSLA): Probably the single biggest stock bubble in recent memory. The stock has been hyped up for ages, and excess free money (read stimulus relief cheques) has made its way to the stock market (especially thru platforms such as Robin Hood) and its chasing returns. The continued hype around Tesla has sucked in thousands of investors. This increased demand for the stock has seen its stock price continue to rise. But to put things in perspective if Tesla was to sell all their assets, pay all their debts and pay what is left to stockholders, each stockholder will get around $4.50. So is it really worth buying the stock at almost $900 when its stockholders equity per share is around $4.50. Think about that before commiting your cash.
StitchFix (SFIX): The market keeps pumping up the stock as they believe that more and more people will be using StitchFix to buy their clothes instead of going to brick and mortar shops to buy their clothes. While this is certainly the case the stock price gains far surpases any business gains Stitch Fix would be seeing due to the Covid-19 pandemic.
GameStop (GME): This stock is the most shorted Fortune500 stock around. The market believes that it is doomed and its business model will see the firm fail in the not to distant future. So short sellers are betting on this. The problem with short selling is if the stock moves up, you get what is called margin calls. Basically you lose more money than what you put in, so you need to pay in more to keep your position open. If you dont want to do that, you have to get rid of your short position. To do that you have to buy the actual shares (as the short selling involves you selling shares you dont have). So to close the position you have to buy the stock to cover the short sales you have. Now this buying to close short positions have created significant demand for the stock of GameStop and hence the surge in its stock price. So trust us its not increasing rapdily because business is booming.
Tesla (TSLA): Probably the single biggest stock bubble in recent memory. The stock has been hyped up for ages, and excess free money (read stimulus relief cheques) has made its way to the stock market (especially thru platforms such as Robin Hood) and its chasing returns. The continued hype around Tesla has sucked in thousands of investors. This increased demand for the stock has seen its stock price continue to rise. But to put things in perspective if Tesla was to sell all their assets, pay all their debts and pay what is left to stockholders, each stockholder will get around $4.50. So is it really worth buying the stock at almost $900 when its stockholders equity per share is around $4.50. Think about that before commiting your cash.
StitchFix (SFIX): The market keeps pumping up the stock as they believe that more and more people will be using StitchFix to buy their clothes instead of going to brick and mortar shops to buy their clothes. While this is certainly the case the stock price gains far surpases any business gains Stitch Fix would be seeing due to the Covid-19 pandemic.
GameStop (GME): This stock is the most shorted Fortune500 stock around. The market believes that it is doomed and its business model will see the firm fail in the not to distant future. So short sellers are betting on this. The problem with short selling is if the stock moves up, you get what is called margin calls. Basically you lose more money than what you put in, so you need to pay in more to keep your position open. If you dont want to do that, you have to get rid of your short position. To do that you have to buy the actual shares (as the short selling involves you selling shares you dont have). So to close the position you have to buy the stock to cover the short sales you have. Now this buying to close short positions have created significant demand for the stock of GameStop and hence the surge in its stock price. So trust us its not increasing rapdily because business is booming.
Related Topics