Tuesday, October 21, 2014

Playing The Oil Slump With Zulily


Summary

  • The slump in oil prices favors top notch retailers.
  • Zulily has a unique online model leading to fast growth.
  • The large stock declines in Zulily makes the stock cheap now that the retail sector has tailwinds.
Citigroup estimates that the recent slump in oil prices provides the world with a savings of $1.8 billion a day. Assuming oil prices stay low for several months at least, consumer spending should start swaying towards discretionary spending at retailers. Sure some consumers will use savings to buy the latest tech gadget, but a large portion of society will use it to restore a depleted wardrobe.

Read the full article at Seeking Alpha.


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