W: Wayfair. Short Entry Conditions
Some personal opinion on Wayfair .
- wayfair is stupendously overvalued
- the stock got lucky off of the pandemic, but without any offline presence, its business model is ultimately unsustainable.
- current price factors in potential high growth, where I see none.
- an online furniture business can only grow so much
- without a full transition in business model, from online to consumers, to (Online + Offline) to consumers, its growth will be stunted. And this will only take a few quarters to reflect on their earnings report growth figures.
- this is not a long term stock to hold, neither is it a short term one, as I will have listed the conditions for entry below
If you disagree, consider:
=> what conditions regarding the stock caused it to be trending downwards before the coronavirus
=> how much has the coronavirus affected those conditions?
=> are these changes sustainable, will they diminish, will they get stronger?
Conditions:
1. Price $199
2. PA and volume showing unwillingness to go beyond.
without meeting these conditions, it would not be wise, for me, as a trader, to enter a position against the current trend, regardless of how tempted it might be.
- wayfair is stupendously overvalued
- the stock got lucky off of the pandemic, but without any offline presence, its business model is ultimately unsustainable.
- current price factors in potential high growth, where I see none.
- an online furniture business can only grow so much
- without a full transition in business model, from online to consumers, to (Online + Offline) to consumers, its growth will be stunted. And this will only take a few quarters to reflect on their earnings report growth figures.
- this is not a long term stock to hold, neither is it a short term one, as I will have listed the conditions for entry below
If you disagree, consider:
=> what conditions regarding the stock caused it to be trending downwards before the coronavirus
=> how much has the coronavirus affected those conditions?
=> are these changes sustainable, will they diminish, will they get stronger?
Conditions:
1. Price $199
2. PA and volume showing unwillingness to go beyond.
without meeting these conditions, it would not be wise, for me, as a trader, to enter a position against the current trend, regardless of how tempted it might be.
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