The Power Gauge Saw the Problems at This Industry 'Leader' Coming

Sometimes, being a "leader" just isn't what you'd hope... On March 11, 2021, fabric and crafts retailer Joann (JOAN) announced its initial public offering ("IPO") pricing. [Chaikin PowerFeed]( The Power Gauge Saw the Problems at This Industry 'Leader' Coming By Vic Lederman, editorial director, Chaikin Analytics Sometimes, being a "leader" just isn't what you'd hope... On March 11, 2021, fabric and crafts retailer Joann (JOAN) announced its initial public offering ("IPO") pricing. The company would start trading on the Nasdaq exchange the next day. And it had been roughly 10 years since Joann last traded publicly. The company applauded itself in the press release. It said it was "the nation's category leader in sewing and fabrics and one of the fastest growing players in the arts and crafts industry." But despite the fanfare, Joann didn't get off to an ideal start... At the time, the company had 855 stores in the U.S. And it had just paid down $433 million in debt. That brought its total debt load to roughly $930 million. Still, Wall Street wasn't impressed. Joann had hoped to raise $186 million in the IPO. But it only raised roughly $131 million. Share prices fared poorly, too. Trading opened around $12. That was well below the proposed price range of $15 to $17. It only got worse from there. And as I'll explain, the Power Gauge saw it coming... Recommended Links: [Ending Tonight: Biggest Wealth Opportunity in More Than 40 Years?]( The stock analyst behind the No. 1 biggest closed winner in Stansberry Research history – and the most stocks in their "Hall of Fame" – says THIS could be the biggest and most lucrative breakthrough of the coming decade. It's not semiconductors... AI... or anything you've likely considered. Trillions could be on the line. But the REAL story goes so much deeper. Hear it in full from a Stansberry employee who "beta tested" this tech... and says it's the reason he'll get to see his sons grow up. Until midnight tonight, [get the full story here (5-10x upside)](. ["This Is How I'd Invest $1 Million Today"]( Legendary investor Whitney Tilson just posted a new portfolio of stock picks. He isn't buying the Magnificent 7... Or putting an equal amount of cash into each. Instead, he's using the Monte Carlo Method to see which of 4,817 stocks could double your money. [Click here for the full details](. As regular Chaikin PowerFeed readers know, the Power Gauge requires at least a year of data to assign a rating. And as soon as it was able to do so, our system flashed a warning sign for Joann. Take a look... [Chaikin PowerFeed] It started with a "neutral" rating... At the time, JOAN shares were trading between $12 and $13. That was above the IPO price. The Power Gauge also noticed that Joann had briefly outperformed the S&P 500 Index. We see that using a proprietary relative-strength measure. On the chart, it's the green and red panel. And as you can see, the run of outperformance didn't last long... In fact, Joann has underperformed the broad market nearly the entire time it has traded publicly. That's not what you want to see from a "leader" in a space. Not surprisingly, the Power Gauge quickly assigned Joann a "bearish" rating. And the stock has maintained that rating – or worse – for most of its existence. Digging just a little deeper into our system, we can see that the individual factor category ratings for the company are about. [Chaikin PowerFeed] Remember, the Power Gauge rates 20 individual factors split into four distinct categories. Today, every one of Joann's top-level categories earns a "bearish" or "very bearish" rating. And just yesterday, the company announced that it's filing for bankruptcy. Folks, it's unquestionable that hindsight makes this one seem obvious. Joann's listing was on shaky ground from day one. That said, a year after the IPO, the stock was outperforming the broad market. And it looked like it might have had potential to be a big winner. But the Power Gauge knew better. And it flashed a clear warning. Today, JOAN shares trade for less than $0.20. That's a staggering 98% loss in just a few years. It's the kind of wipeout that can crush a portfolio. Sure, we can all think that we would avoid a blowup like Joann... But I'd rather have the advance warning from the Power Gauge to avoid a trap like this. Good investing, Vic Lederman Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 +0.19% 13 17 0 S&P 500 +0.59% 182 259 56 Nasdaq +0.95% 33 54 12 Small Caps -0.6% 424 1089 396 Bonds -0.32% Communication Services +1.78% 4 13 2 — According to the Chaikin Power Bar, Large Cap stocks and Small Cap stocks are Bullish. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Energy +2.31% Communication +1.59% Financial +0.42% Materials +0.31% Industrials +0.17% Staples -0.15% Information Technology -0.23% Discretionary -0.44% Health Care -1.05% Utilities -1.31% Real Estate -3.0% * * * * Industry Focus Retail Services 22 47 7 Over the past 6 months, the Retail subsector (XRT) has outperformed the S&P 500 by +7.89%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #10 of 21 subsectors and has moved up 2 slots over the past week. Top Stocks [rating] KR The Kroger Co. [rating] TGT Target Corporation [rating] AMZN Amazon.com, Inc. * * * * Top Movers Gainers [rating] TSLA +6.25% [rating] MTCH +4.71% [rating] GOOGL +4.6% [rating] ADBE +4.35% [rating] ANET +4.17% Losers [rating] IP -3.88% [rating] ABT -2.64% [rating] VFC -2.64% [rating] BF.B -2.4% [rating] EXPD -2.19% * * * * Earnings Report Reporting Today Rating Before Open After Close CNM No earnings reporting today. Earnings Surprises [rating] SAIC Science Applications International Corporation Q4 $2.27 Beat by $0.58 [rating] STNE StoneCo Ltd. Q4 $0.26 Beat by $0.03 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. For questions about your account or to speak with customer service, call [+1 (877) 697-6783 (U.S.)](tel:18776976783), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2024 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. [www.chaikinanalytics.com.]( Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.