A post of note from a private TRLG board:
Subject: Sent to me by a hedge fund manager...
The highest price target right now for TRLG among the six boutiques that follow the name is $23, which I think is absurdly low . TRLG has a 107% ROE, 376% quarterly revenue growth, and a mere 18 forward P/E multiple. Most of the other hot apparel companies enjoy forward P/E multiples are more than twice as high: CTRN 40, VLCM 34, UARM 75, ZUMZ 42: they average 39X, ex-UARM. Put that 39 multiple on TRLG's recent 2006 guidance of $1.17 and we get a $45 stock.
January short interest was just released this week and it jumped 14% over December to 4,902,248 shares. There are only 22M shares out, and 40% of those are tightly held by insiders, so 37% of the float is short. This name reminds me of HANS when we first bought it in 2004: hated and shorted as a "fad" stock, when in reality it is dirt cheap and building a top brand.
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