Berkshire Hathaway Announces New Stake in Restoration Hardware, Sets Up Trading Opportunity
On April 2, I published an article, titled “Time to Change My Mind About Restoration Hardware.”
If you acted on this advice, you’re a lot richer today.
Here’s a quick review…
In April, I noticed that Restoration Hardware (NYSE: RH) shares were falling on earnings – and reported:
Last week, shares of the companyfell more than $28 after 2019 earnings guidance came in just under $9, against the expectation of $10. Its stock dropped 20% on the news, and management blamed “negative trends in the high-end housing market.”
In response to this drop, I said…
Wall Street (on occasion) tends to overreact. This might be one of those times, and it allows us to get in on a strong stock for a far better price than before… I view this as a second chance to correct my thinking and a second opportunity to get into Restoration Hardware.
On that day, the action plan was simple. I said…
If we can see some stabilization in Restoration Hardware stock, a possible move above $105 might be where I’d start dipping a toe into the water. This earnings overreaction gap has quite a lot of room to fill.
Here’s what the Restoration Hardware chart looked like when this alert was posted:
Fast-forward to today…
It was just reported that Warren Buffett – and Berkshire Hathaway – revealed a new investment stake in Restoration Hardware of 1.2 million shares as of the end of Q3.
This investment makes them the fourth largest shareholder in the hardware company – but it’s still considered “small” for Berkshire Hathaway.
So there still could be more to come. On this news, shares of Restoration Hardware are exploding.
Here’s the chart…
Action Plan: If you acted on my $105 Restoration Hardware entry price recommendation back in April, you’re now looking at an 80% gain. And that’s just on the stock – this advice came from a free letter!
Just imagine what you could be making if you were a War Room member. Actually, forget that. You don’t have to imagine – I can show you what members are saying right now!
“Hello Bryan, I am a newcomer (3 months) and today I made over $18K by playing on RH. I have made many times more than what I paid for the service. Thank you and keep up the GREAT work.” – Maasho F.
“My account is up $4,174.50 today all due to WR recommendations! Long live The War Room!” – Mark P.
“In at $3.20 out at $11.07.” – Keith K.
“In at $2.75 out $11.00.” – Lynn M.
“RH bought @ $3.10 another @ $1.80 Sold both @ $12.00.” – Daljit S.
“Held my RH calls from last week, closed out 175% 🙂” – Adam K.
“I made a killing on RH calls.” – James D.
If you want to start making $18,000 on plays like this (like fellow “newcomer” Maasho from above), then you’re invited to join me in The War Room today!
About Bryan Bottarelli
Bryan graduated with a business degree from the highly rated Indiana University Kelley School of Business, and his first job out of college was trading stock options on the floor of the Chicago Board Options Exchange. He was mentored by some of the country’s top floor traders in the heart of the technology boom from 1999 to 2000, where he learned to identify and implement some of his most powerful trading secrets. Now he shares his secrets with a group of elite traders. We will be republishing some of his highly sought after content from his free e-letter, Trade of the Day.