Posted on February 14, 2021
Today we get out of bed and jump straight into the arms of somnambulant specialists Sleep Number Corp. (NASDAQ:SNBR), makers of beds, bedding, and all else that contributes to a superior circadian dormancy.
The company has a 22 year history as a listed stock, the first twenty of which saw the shares average just $20.
Last March shareholders waved bye-bye to $20 and watched the stock climb to an all-time high of $133 – struck just last Friday.
As you can imagine, we find it difficult to conceive that such a move will be lasting, particularly as the competition in the mattress field is anything but lethargic, and the current bullish insomnia is not slated to last much longer.
Fundamentally, we believe, the stock is now headed for some shuteye.
To wit –
The company delivers earnings this Wednesday, but even in a best case scenario, we can’t imagine a report that would jack the share price for more than an hour or two.
Stock’s way too overbought.
As the chart below shows, both daily and weekly RSI signals are excessive , a development that normally shoots bolts of anxiety through the legs of fund managers.
We, too, get a chill of the jiminys when we see it.
With kind regards,
Hugh L. O’Haynew