בס״ד

Give Thanks For Jean Shorts. (KTB)

Posted on November 26, 2020

Today’s trade is based on textile manufacturer, Kontoor Brands (NYSE:KTB), makers of Lee and Wrangler denim apparel.

We like the product.

But even dungarees have their limits, no?

So what’s the problem?

For starters, it’s jeans we’re talking about here, and they have nothing to do with the Batflu.

Right?

So there’s very little reason for the incredibly steep rise in price we’ve seen over the last two months.

Right?

That is, it’s not ZOOM.

Or Facebook.

In fact, as you’ll see on the chart below, the move from $13 TO $45 in half a year – while sales and earnings were dumping – makes little sense at all…

Particularly today, when…

  • P/E is a foolish 54.3,
  • Price to Book is an overdone 95.61,
  • Debt to Equity ratio is 39.9, and
  • Sales and earnings numbers, as mentioned, are all down for the last year and five year periods.

Torn and Frayed

Take a look now at the daily chart –

Technically, she lines up like this…

Breakeven arrives at $40.70 [current price is $43.40].

Many happy returns!

Matt McAbby

P.S. come back tomorrow for news on IBP, CROX and EXPE.

 

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