JWN , Short JWN has debt issues and are low on cash in the meantime .Their quick ratio is 0.5 and debt/equity is 13.75 .
At time of writing cash per share is $5.73 and book is $1.73 per share .
RSI is currently in overbought levels at 77.10
Short float is > 32%
Short Ratio is > 3
Forward P/E is 25.12
I was originally going to wait until the next resistance around $40.99 to short. However, I just noticed that after market close they reported a 22% decline in holiday sales compared to last year at this time. Taking this into consideration, I decided to adjust my game-plan to take one small level in today's aftermarket and set my original entry level ( $40.99 ) as a cost average level .
The 22% overall decline is not as bad as it sounds in my opinion because they were actually able to increase digital sales 23% and still expect to deliver positive earnings (EBIT) for Q4.
Personally , I think that their quick ratio and debt/equity is the big red flag , not to mention technicals also support a move down soon too (especially RSI) .
That's just my opinion but looking at the 32 % short float , we can deduce that there are many other traders with similar viewpoints . It would seem to be a perfect time for an offering to help that quick ratio out a bit , wonder if the management is thinking the same ...
Good luck ~
