According
to one of our traders this is the buzz phrase for the week - "You can't
bank margin".
He is
referring to the propensity for retailers to sit on stock that they have
brought at a great price and then steadfastly refusing to reduce their selling
price despite slow sales. Having a great margin might give you a warm fuzzy
feeling inside but moving stock and creating cash flow is more important. This
is particularly important in a volatile retail market where today's hot product
is potentially tomorrow's dud.
Thanks to
Jim Antonopolous for this tip.