Sell Express

By Robert Frick and Linda McDonough • August 25, 2016

We are selling Express (NYSE: EXPR) out of the Growth Stock Strategist portfolio. The shriveling of mall traffic matched with a poor quarter of merchandising demolished estimates for the year. Earnings for this year are now $.98 versus $1.48 when we first initiated it with a buy. I don’t see the stock going much lower, but the turnaround will take much longer than expected. If you already own this stock, I would recommend a $10.50 stop loss.

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HowieA

08/25/16 ‐ 1:26pm ET August 25, 2016 at 1:26pm ET

Hi Linda & Robert – I am confused. Are you suggesting we sell EXPR or that we put on a $10.50 stop loss and let it ride for a while. Thanks in advance for your continued assistance. Howie

Linda McDonough

08/25/16 ‐ 1:54pm ET August 25, 2016 at 1:54pm ET

Howie,
Sorry for the confusion. I have sold it out of the Growth Stock portfolio but think it will creep up from here. If you own it, as I believe you do, I would use the $10.50 stop loss on the current position. The company is still earning money and trades a reasonable valuation. I just don’t see a huge improvement in the fundamentals near term. Linda

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About The Author

Robert Frick

Bio | Archive

Robert Frick is Editorial Director of Investing Daily. Bob is a career business and financial journalist, with a 15-year tenure as senior editor for Kiplinger’s Personal Finance magazine, in addition to working as a newspaper business writer and editor, and a stint as an investment writer for USA Today.

He’s a nationally recognized authority on behavioral finance, and worked two years as a writer, researcher and speaker for the Allianz Global Investors Center for Behavioral Finance.

He has co-authored three books on personal finance, and holds an M.B.A. and a B.A. (Journalism) from the Pennsylvania State University