Another stock we feel may be vulnerable early this year is BILLABONG (BBG). The niche fashion/lifestyle retailer has got currency issues along with many other exporters, but also trades at multiples that demand growth. If the company continues to deliver, good luck to it, but if it slips up..........We were short BBG late last year and suggested covering the trade when the stock hit 650. Since then it has seen fit to rally above 700 although it has just slipped below that level again. The company's purchase a surf wear retail chain in Hawaii last week reminds us a bit of ALL looking to expand into Russia in late 2002 in so much as suggesting organic growth is becoming more problematic. Whatever the case, BBG needs to produce the goods or watch out.
Source: tricom Securities
BBG currently 7.16 and perhaps overbought!
BBG Price at posting:
0.0¢ Sentiment: Sell Disclosure: Held
