What a momentum play Polo Ralph Lauren (NYSE: RL) has been during 2011 so far.
This retailer thinks it is a dot.com from the Web 1.0 days.
Currently trading at about $ 155 per share, it is up a cool 37 % so far in 2011.
Investors, speculators and fashionable people around the world are looking at RL and asking whether it can continue. Well can it? The answer is no Polo Ralph Lauren (NYSE: RL ) carries over a billion of goodwill and other intangibles on its balance sheet. Not a good sign. Other issues such as global consumer spending in Europe is raising red flags. Enjoy the lofty values with RL while they last.
There are OTM put options on RL that are surprisingly not that expensive.
