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Amazon Might Take Advantage of Toys ‘R’ Us Store Closures

Discussion in 'Economy' started by Susan Addams, Mar 23, 2018.

  1. Susan Addams

    Susan Addams Unregistered User

    Time.com (link)

    I filed this under "interesting," "maybe," and "pigs might fly." I still favor Sears as the organ donor to donate their stripped and closed stores and become the new Amazon brick and mortar. I just found out that our local Sears is known to be closing soon although I do not have the date. I was at the right mall but didn't have the time or energy to walk over to Sears and ask. Maybe I'll do it soon.

    Just noting that Sears usually has "anchor" locations in most malls across the nation. Amazon would also want anchor locations because they are smart and when they ramp up the stores they will plan to come in with fire and thunder!

    So I know for sure that shortly I will have no local Sears store. I found one article that said my local Sears and 103 additional stores will be going out of business this year. Another article says 64 Kmart stores will close soon.

    Between the 3 terminal store chains Amazon should have plenty of pickings.

    It's interesting to note that I suspect that Amazon like any good predator will eat what it kills. Amazon needs the floor space and their superior business model put these "refused to change" stores out of business. My prediction is that in the end it will come down to Amazon vs. Walmart.

    Now here's the part that I usually add as an ETA. Look at the charts for AMZN and WMT at the 1 year level and you see an interesting compare and contrast. The first Wall Street setback put a hitch in AMZN's giddy up, then it continued its relentless climb towards #2 market cap. WMT hit the skids and is still acting like a sick cow. Compare the market cap. and you can see that AMZN has 3x the market cap. of WMT. (748B vs. 258B.) Walmart gets to keep playing the game only because they are not as sick as Sears, Kmart, Toys R Us, etc. Walmart is not healthy, it's just that Walmart hasn't caught a terminal disease. Yet.

    People, don't look at amazing Amazon's 10 day behavior and call the mortician. Just 10 days ago Amazon was at a record peak, the highest price they ever attained. It's only down about 3.4 percent off the peak at close of market today. The whole market is sick yet it hardly affected Amazon at all. Market cap. leader Apple is down 7% in the same time frame, twice the drop of Amazon. Alphabet (Google) is down 7.6% in the same time frame. Berkshire Hathaway is down 7% in the same time frame.

    Do you get the picture? Amazon is strong and healthy and hitting back in a sick market. The other top cap. contenders are getting hit TWICE AS HARD in the same sick market.

    When the going gets tough the tough go shopping. :) Now you know why I'm not selling my AMZN stock, and why depending on tomorrow's activity I might just spend the small change left in my trading account and buy 2 more shares of Amazon. (About $3K.) That's the same price I bought at this Monday and I see no reason why a good deal on Monday can't be a good deal Friday too. It's pretty much like leaving the bar after a good night and tossing your change in the bartender's tip jar.

    I'm still predicting Amazon $3,000 by February 2020.
     
  2. Susan Addams

    Susan Addams Unregistered User

    I placed my buy order a few minutes ago. I had a bit less than 3x the current (down from yesterday) price, so I placed a bottom feeder buy order for 3x at $1,505 which would leave less cash than enough to buy a pack of chewing gum if my trade executes.

    If it executes then I just got 3x AMZN at a really low price. My $4.5K will be worth $9K in two years.

    It's too bad there are so many sheeple in the market, and they should outlaw that robo-trading. Robo-trading just makes the market unstable.

    I don't care what anybody says. Their crystal ball isn't any better than mine; I know nothing; they know nothing.

    Except I know AMZN is eventually going to be headed up, and I predict they'll beat Apple's market cap. in the next 2 years also. That would make Amazon the most valuable company on the exchange. The gap in market cap. between forerunner AAPL and Amazon get less every day. (Well not literally, but inexorably.)
     

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