Geri:
I agree with your long term assessment of the stock, but I am not a buyer at this moment. It is true that FEET is coming into the best season for sales with the back-to-school and x-mas seasons right around the corner. I dont't think that will translate into an immediate boost for the stock price, however.
As Mark pointed out, FEET has blindsided the analysts and they will not be forgiving immediately. Even if FEET does have a terrific next month, how will anyone know? FEET does not report monthly sales (unlike another retailer I follow: Pier 1). Once a dive like this occurs in a stock, it takes a quarter or two at least for the market to regain confidence in it. Granted, FEET may talk to the analysts rather than us, but I don't think they are going to jump immediately. They've just been burned.
Based on past observances of this stock, I believe it will drift lower for a little while, then begin to recover. If word starts to leak out that sales are good and that costs are under control, it may go back to the 15-17 area. I am nervous, however, about the analysts reference to cost problems. I want to know more.
Walter High |
