Okay, I've been lurking this thread for a long time, and have picked up some good picks (thanks, guys, by the way), but I'm confused as to why CWTR is a good value play.
Yes, the 36.9 PE would be justified by the projected growth (.44 per share in '06, .70 in '07, .98 in '08). But this is a clothing line. How worthwhile are some analysts' guesses as to what women will find fashionable next year? If sales flatten out, the stock absolutely crashes. That doesn't fit my definition of a value play, where the concept is to get a stock which can't go down much but can go way up.
I'm not opposed to fashion lines; I made great money on Coach this year, but it had a PE which made me comfortable. |
