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Strategies & Market Trends : Value Investing

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From: Paul Senior10/28/2010 10:54:51 PM
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Clothing stocks: Upping my stock positions in clothing retailers.

I seem now to have companies from tots, to teens, to mature adults. With a small buy of Chico's FAS today, I hold

finance.yahoo.com

I like cash-rich, debt-free retailers. Their earnings can pop if they get the fashion season right. With their good balance sheets they can withstand downturns. Given the state of retailing space, they ought to be able to secure good prices at lease-renewal times. Perhaps the greatest risk might be people moving from mall or retail shopping to buying their clothes on-line. Internet retailers would likely have a larger selection, greater size selection, and maybe no sales taxes to offset the shipping costs.

(I hold EL, not a value stock, and not really a clothing stock, because I like the exposure and brand recognition that it has in China.)
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