We recommend the purchase of Christopher Banks (CBK @$16). CBK is a Minneapolis-based regional retailer of women's specialty apparel. As of 6/01/02, the Company operated a chain of 391 stores in 29 states, primarily in the Midwest. For the 39 weeks ended 11/30/02, net sales rose 26% to $243.4 million. Net income rose 24% to $28 million. We estimate CBK will earn $1.45 per share on $346 milion in revenue this fiscal year ending Feb. 2003, and $1.78 next year. Projecting an average earnings growth rate of 22%, we estimate CBK's current PEG ratio to be .44x, substantially below those of its peers'.
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