Restoration Hardware Crafting a Dangerous Cross

Restoration Hardware (RH – NYSE)

Friday, August 09, 2013

Back in late July, we pointed out in Bottarelli Research Options that Restoration Hardware (RH – NYSE)’s 46 times consensus estimated earnings made it fabulously overpriced compared to competitors like Williams-Sonoma (WSM – NYSE) (18x earnings) and Ethan Allen Interiors (ETH – NYSE) (15x earnings).

In August, investors began to correct that gap, with RH shares losing more than 7% in a few short days. But, that may be the least of RH’s troubles!

RH 080913

Bottarelli Research Tip: These new IPO’s offer relatively few robust technical signals. But right now, RH’s are looking increasingly scary. First up, we have the second Sell Signal Stack in the stocks short history, indicating a drop to the 38.2% retracement marker at $60.17. But it’s the Sellers Cross brewing on RH’s MACD that could really stick it to investors. If that finishes forming up, we would see shares drop to the 61.8% retracement marker at $49.37, for a net drop from current price of more than 24%.

“On Facebook, I bought August 26 Call at $1.54, sold for $8.00. Total realized gain $25,716.7.” — BR Professional Member Todd M.

The original Charter Memberships into Bottarelli Research Professional sold out in less than two weeks. But now, 25 new Charter Memberships have become available for active clients in good standing.

What could Bottarelli Research Professional offer you? And why do you need to lock in one of these spaces right now? All the answers are revealed here.

Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.

Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.

CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.

This e-mail was sent to buzzhairs.finance@blogger.com because you have opted in to receive the Bottarelli Research Chart of the Day. If you prefer not to receive future e-mails from Bottarelli Research, please unsubscribe from our mailing list. Your privacy is important to us. See our Privacy Policy for details.

About