Closer Look Shows Toys R Us Has Big Flaws
By James J. Cramer
11/24/2003 11:51 AM EST
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Toys R Us (TOY:NYSE) BEARISH
Price: $10.77 | 52-Week Range: $7.70-$14.80
There's no reason to shop at Toys R Us.
Plus, CEO Eyler has lousy credentials.
I'd short it until Eyler left, then cover.
Position: No position
The wife's right. Toys R Us (TOY:NYSE - commentary - research) is a turkey. After reading through all of your email, pro and con, about Toys R Us this weekend, I can say with all due respect that I don't think these guys can make it.
Here's the deal: There's no reason to go there. That's all you need to know. If there is no reason to go, not price, selection, or experience, then why does Toys R Us have to exist?
Plus, as much as I may have been taken by John Eyler, the CEO, his credentials have to be among the worst of any CEO I've seen in my lifetime: Hartmarx CEO from 1989-1992 (a period when I shorted the stock endlessly and won), FAO Schwarz (FAOO:Nasdaq - commentary - research) CEO (1992-2000), presiding over the destruction of that once indestructible franchise, and he's been at Toys R Us since 2000, a period when a lot of damage has been done.
My take? If I could, I'd short it until Eyler left. Then cover.
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