Samsonite | Sell
Price reached 2.5yr downtrend resistance. Technicals also showing negative divergence. Rally hitting key fib retracement levels. RSI could fall back down into bear-range.
Fundamentally, I've being bearish on Samsonite ever since they (over) paid Tumi back in 2016. Luggage is a commoditised product. Online competition was becoming fierce (Away Travel was just launched offering lifetime warranty, Xiaomi had one of the best carry-ons I've seen for <US$80, and so many generic brands on tmall and jd.com, etc). I even did a quick scan of 2000 tourists at a cruise terminal in China; Not too many carried Samsonite (various brands under the group), and the ones that did had the low-end brand/models.
So..time to sell. The bearish fundamental story have not changed. Bad pre-covid. Very bad during-covid. Still be bad after covid.
Fundamentally, I've being bearish on Samsonite ever since they (over) paid Tumi back in 2016. Luggage is a commoditised product. Online competition was becoming fierce (Away Travel was just launched offering lifetime warranty, Xiaomi had one of the best carry-ons I've seen for <US$80, and so many generic brands on tmall and jd.com, etc). I even did a quick scan of 2000 tourists at a cruise terminal in China; Not too many carried Samsonite (various brands under the group), and the ones that did had the low-end brand/models.
So..time to sell. The bearish fundamental story have not changed. Bad pre-covid. Very bad during-covid. Still be bad after covid.
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