Posted on October 15, 2019
Today’s is a purely speculative bet on a company with a saccharine name and – in our lofty opinion – a business that has no business remaining in business.
More in that in a moment, though.
First, we want to wish you all a faith-filled Sukkot holiday, and good weather to boot. There’s nothing so spiteful as an October chill – or worse, a downpour or snow dump – to make life in the sukkah a dreadful bore.
That said, on to our trade…
The outfit we’re rendering unfit today is Bright Horizons Family Solutions (NYSE:BFAM), operators of 1100 institutionally administered day care centers across the English speaking world.
We’re not of a mind that these institutions are healthy for anyone, regardless of how professionally run (or profitable) they may be.
Because day care is not child rearing.
On the contrary.
Day care is an abdication of parental responsibility.
And it’s done in the interest of money.
And nothing else.
And now on to our trade…
To begin, the stock is not cheap.
We think so.
But even more so, is the company’s chart for the last six months.
Have a look –
Technically, we have –
In short, we’re looking for a clear break below the H&S neckline (in blue) to carry the stock considerably lower.
With kind regards,
Hugh L. O’Haynew