Is MOV Nearing a Bottom?
Another beaten down stock I like is Movado Group (NYSE:MOV).
I love the story of the guy who started it. He was born in Cuba. When he was a young kid, someone asked if he could find a clock. He went, he got the clock, he sold it -- didn't make any money. The guy wanted two more clocks. He said, ‘you mind if I make a profit?’ The guy said ‘sure, why not.’ He made a buck, so the capitalist seed was born inside of him.
Then, Castro took over and took him in, they beat him up for about eight hours and asked if he was going to join the regime. He said no. He then went to the airport and left the country (his best friend who was already in Castro’s military was at the airport, and let him go). He came to America and started Movado. That's the greatness of this country.
The stock has been under a lot of pressure, so I am trying to pick a bottom. But I think it's oversold. There are questions about the higher Swiss franc. I think it'll make some of the competitor products more expensive. Having said that, I know it's a higher risk than normal. For the most part, I don't mind giving up two points for the upside, but in this particular case, if someone wants to build a position here, I think Movado might be the stock to buy and hold six months to a year.DISCLOSURES