Our Stock of the Week is Stitch Fix (SFIX). SFIX operates an online personal style shopping service for apparel, shoes and accessories that are choses for the shopper and delivered to their home. Client’s provide information about fix, style, price, etc and SFIX uses algorithms to choose the rightr products. There is a $20 styling fee.
The Stock IPO’ed at $15 November and took off in early June after posting a strong quarter and guidance. The stock moved higher later in June on rumors that Oprah was taking a stake but that was denied by a representative.
The stock has been forming a new base between $32 and $34 and we are looking for another move over $34 to bring in momentum traders.
The stock has an aggressive valuation and needs a strong market to help it move. As always we would not chase the open on Monday morning but would look for a surge on increased volume to suggest that speculative interest is building.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength, and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees and affiliates of Shark Investing, Inc. and/or principals, employees and affiliates of Shark Asset Management, Inc. ("SAMI"), directly or indirectly, controlled investment and/or trading accounts containing positions in SFIX. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.