Some nice moves in many of your stocks mentioned, Grommit.
I'm interested in HKF now. Do you (or anybody else here) have a current opinion on it? It's still not in the bargain range (for me), but close.
Although same store sales have been down, the company seems to be making a lot of good moves (imo):
"TUPELO, Miss.--(BUSINESS WIRE)--Feb. 27, 2004--The Board of Directors of Hancock Fabrics, Inc. ... increased the quarterly cash dividend to 12 cents per share, a 20% increase from the previous dividend rate of 10 cents...
Larry G. Kirk, Hancock's Chief Executive Officer said, 'Hancock Fabrics' cash flows have historically been sufficient to fund the necessary investments in our store and distribution operations, while also paying meaningful cash dividends and purchasing substantial amounts of treasury stock. The most recent year was no exception, even though the $22 million in capital expenditures in 2003 was the Company's highest due to the new distribution center and the implementation of store point-of-sale systems in 160 stores. In addition, Hancock opened 28 new stores, repurchased almost $10 million of treasury shares, paid over $7 million of cash dividends, and temporarily increased the level of high-turn basic inventory to ensure that stores would be replenished during the relocation of distribution operations to the new D/C.'"
Maybe cap expenditures and p.o.s. systems outlays will now be substantially diminished, thus increasing bottom line earnings.
I don't know this business well enough. It seems to me that for home sewing and fabrics associated therewith, that there are basically two prime choices?? The person goes to their local Jo-An or Hancock which have a national (more or less) presence. Or else the choice is a local mom-n-pop - if there is one. Maybe we're dealing here with a duopoly in a declining market?
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