on one hand, you are correct that CWTR is not a value play, it's more of a GARP play
on the other hand, while COH may have a more dependable following, its PEG ratio, which is far more important to a GARP play, is much higher than that of CWTR, so it's hard to say that COH is more attractive on a valuation basis (note that the "2007" number you list is the earnings for the year ending next month, etc)
CWTR posted almost 10% same store sales growth last quarter...perhaps their offerings will go out of style next year, but so far they appear to be executing very well, and their customers are mostly professional/mature women, rather than the teenagers that make companies like PSUN, ANF and AEOS much more subject to changing whims...i'm certainly not relying on the analysts to know what will work next year...i'm relying on the CWTR management to continue to execute...so far they seem to be right on track, even though the stock reminds me of a category 5 ride at magic mountain <g> |
