re: BL. Wallace, book value for these 'fashion' retailers is iffy, imo. On the one hand. book value is increasing, so they've not taken substantial write-offs. OTOH, that suggests it could be only a matter of time before they do. They are investing $23M in improving order fulfillment and they are outsourcing as well. It's to-be-determined what kind and how much writeoffs there will be (if any).
Given the lousy ROE numbers on that high book value, I'd say the stock is generally reasonably valued at about 20 in years like now when BL has relatively low earnings. Providing book value doesn't get chopped in a restatement or in future, BL price/book value ought to increase (imo) when BL earnings improve.
BL is not growing revenues. Revenues seems stuck at somewhat over $.5B/year. Earnings though, move around quite a bit - maybe that's due to general economic fluctuations and/or to the luck/skill that BL can muster to capture customers with each new year's 'fashion' offerings.
I'm betting the stock will come back, as it has in the past.
finance.yahoo.com
Helpful to patient investors is the knowledge that insiders are persistent (although small) buyers of stock, there's no long term debt, there's a dividend, the company is profitable, and stock outstanding seems to be diminishing.
Paul
who, although he's been wrong many, many times
believes in Grommit who has bought BL and who
is not as wrong as often as Paul is wrong) |
