|
Innovo (NASD: INNO) is a great buy at current price. Innovo Group is a tote bag manufacturer that held an exclusive license with the USOC for official olympic totebags. Preceding the Olympics, the stock surged from around 25 cents to a high of 2.25. Now that the Olympic hype is over, this stock has fallen back to its 25 cent price. The fundamentals of this company have drastically improved, due to a finalization of a bankruptcy deal. Their subsidiary, Thimble Square, was losing money and was unprofitable. In trying to rid themselves of Thimble Square, Innovo was faced with all sorts of court costs and other bankrupcy related expenses, which took a hit on their earnings. Recently, within the past 6 months, the bankrupcy was finalized and all payments and expenses ceased. Kirk, the director of Innovo, informed me that now these expense were out of the way (Innovo had been consumed by them for nearly a year) Innovo could focus on its core business. They have large contracts with stores such as Kmart, Walmart, and Montgomery Ward, and they hold licenses for the "I love you, Man" slogan from Budweiser, as well as other licenses from Warner Brothers for Looney Toons, and for the Movie Space Jam, which is due out in a few weeks. This Christmas should see a great rise in earnings for Innovo. All the retailers are expecting this Christmas will be much improved over last, which bodes well for Innovo. This stock has great long-term potential, and is a must buy at these extremely low prices. |
