Smart Money with Keith Springer Saturdays at 1PM and Sundays at 6AM on NewsRadio KFBK 93.1 FM and 1530 AM

1st time published in the International Business Times


Retail stocks have already priced in strong Black Friday


“It’s not a healthy retail season at all, since we’re coming up from such depressed levels,” said Keith Springer, president of Springer Financial Advisors in Sacramento, Cal.

 “Any uptick looks positive and provides a sigh of relief; but. generally speaking, consumers are still over-leveraged and very cautious. The holiday sales figures will likely represent a blip.”

 Springer also said that while retail sales have indeed improved, they are nowhere near where they need to be in order for stores to increase supply and start re-hiring workers again — the hallmarks of a true revival in retail.

From an investment perspective, Springer believes retail stocks have already priced in a good Christmas season and that they have little upside — excluding certain niche names like Best Buy (NYSE: BBY), given the continuing high popularity of electronic products, like Smartphones, iPads and DVDs.

Otherwise, the poor economic backdrop will likely lead to more retail companies either folding or merging in order to survive, Springer said.

“Longer-term, many retail stores will either go out of business or combine with other entities as they face a serious price squeeze and increased competition,” he noted.

 “Retail stocks are vulnerable; they will need to rack up tremendous sales, given their thin margins.”

“Black Friday no longer is a true reflection of retail sales, but it is symbolically important and will be observed by the market,” Springer commented.

View full article

Springer Financial Advisors ("Advisor") is a federally registered investment adviser located in Sacramento, California. Advisor and its representatives are in compliance with the current filing requirements imposed upon registered investment advisers by the Securities and Exchange Commission and the State of California. Advisor's web site and its emails of general distribution are limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of Advisor's web site on the Internet or dissemination of informational emails should not be construed by any consumer and/or prospective client as Advisor's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. A copy of Advisor's current written disclosure statement discussing Advisor's business operations, services, and fees is available from Advisor upon written request. You may also obtain publicly available information about Advisor through the SEC website as follows: Advisor does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Advisor's web site or incorporated in an email, and takes no responsibility therefore. All such information is believed to be reliable and authoritative but does not constitute sufficient information to be the sole basis for sound investment decisions and all users thereof should be guided accordingly. Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by Advisor) made reference to directly or indirectly by Advisor in its web site, email, or indirectly via a link to an unaffiliated third party web site, will be profitable or equal the corresponding indicated performance level(s). Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client or prospective client's investment portfolio. Certain portions of Advisor's web site (i.e. articles, commentaries, etc.) may contain a discussion of, and/or provide access to, Advisor's (and those of other investment and non-investment professionals) positions and/or recommendations as of a specific prior date. Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Advisor, or from any other investment professional. The information is of a general nature and should not be applied indiscriminately to particular situations wherein it may not be completely applicable. Advisor is neither an attorney nor an accountant, and no portion of the content should be interpreted as legal, accounting or tax advice.