Zales looks like it's breaking out but it still showed a loss for the 4th quarter. Buy or just watch for now?

Dusty answered 3 months ago …

I read a major commentary about Tiffany's in the last 30 hours. Zales was mentioned. Money is getting tight for everybody. Even the very wealthy. Tiffany's is laughing off any fear of recession. Zales sells to a more ordinary class of mortal. I would sit and watch for quite a while. I am sitting on my hands with my cash under the bucket I am sitting on now. If the Real Estate/Financials/Appartent Global Crunch plays out well then there will be a lot of good buys later in the Fall. Retail in that case will be worse than dicey across the board. Highly discretionary and expensive things like jewlery (apparently already) tend to see tighter purse strings very early. Except for those with so much money that they are unaware of problems in the economy. The commentary made a half-joke about January sales at Zales and maybe (gasp!!) Tifany's. There seem to be an excessive number of Bear traps and Dead Cats on springs(?) around lately.