Posted on April 29, 2021
We’re taking on a monster today, so suit up your armor, and remember the chain mail.
This sucker’s gonna be a tough one.
That’s right, your college degree won’t get you much leverage today, either – not that it was worth much, anyway.
As a wise man once said –
“A college degree is proof positive that the recipient had the funds to pay for it.”
That said, let’s get straight to it.
We’re trading Restoration Hardware (NYSE:RH) today, makers of home furnishings in the classic style and for the same price – but without the genuine classic quality.
As the title of today’s correspondence suggests, we’re not so fond of RH stock at this price, and short of calling the police, we’re doing everything in our power to take this sucker down.
Before we get to the charts, though, consider a few fundamentals.
In other words, you’re dealing here with an overeducated, con-artist antique merchandiser.
Next earnings come in June, and, yes, analyst revisions are nudging higher, but not with the same oomph! we’ve witnessed over the last two quarters.
Moreover, the company’s website now lists the following warning at the top of their homepage –
AN IMPORTANT DELIVERY UPDATE. We’re experiencing delays due to challenges from COVID-19 and its impact on our production partners and the global supply chain. We’re doing everything possible to improve the situation, and appreciate your patience.
Can that be good?
Now have a look at the charts.
Many happy returns,