There are many ups and downs to retail stocks, the tough bit is getting to know how to get to know them!
The main issues with whether it is a good stock, particular to the retail sector that is, are ease of entry to the market, management issues and the cyclical nature of the sector.
The ease of enty to market means how easily a competitor can start up and directly compete with you. In retail, this is relatively easy, lets say compared with the Oil and Mining stocks.
Managememt too, plays an important part as fads, fashions and brands are judged harshly by the general public.
Lastly, the economic cycle can play a big part, for example, our current situation! For the ups check out my next entry!
Wednesday, 28 October 2009
The ups and downs of Retail stocks
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