Get out before it hits the approval aisle bont
Bonton slashing prices on the stockmuch has been revealed bon ton's(Bont)Current turn-Around, so we will skip the company description and jump right into our thesis of why we think the recent run up in bont makes it a hugely attractive short candidate
1.Short term outlook at the buying price of long term recovery
Retailers in a downturn typically rationalize store counts in order to generate profitability and fcf to live.On the other hand, these increased margins aren't free and come at the expense of declining growth.This is the positioning that bont is currently in, but a celebrity, the market has rallied incredibly more boldly around the stock.Simple that the"Transformation"Is on the right track, but we have seen the same story unfold poorly for other establishments this year.Ruby monday(Rt)Moreover abercrombie moreover fitch(Anf)Both looked like huge fcf generating companies t
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