All sorts of businesses have been negatively impacted by shifting demand preferences as a result of COVID-19. One business that has been hit in an outsized way is apparel, and this weakness has shown up from those that retail apparel, to those that make it. A company in the latter bucket that I think has rallied too far, too quickly is Columbia Sportswear (COLM).
The stock was cut in half from pre-COVID levels into the worst parts of the panic selling, but very quickly rebounded. Since June, however, the stock has moved around a lot, but hasn’t gained any ground. With gap resistance coming up at ~$92, as well as what I view as an overvaluation, I think Columbia is ripe for profit taking if you were nimble enough to have bought at lower levels.
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