Yes,still holding--was going to at first dump it for 10% loss but
the more I familiarized myself with the company I decided to be patient & make it an intermediate term hold.
The key point to know is that Bombay was virtually rudderless for
over a year,as they had no COO,but after a year of head-hunting they
got Mehrlander,from Home Shopping Network.This can only help in
their turnaround plan.
They have 50million in cash and no debt,and their gross margins
have been improving.My problem is,as I live in the boondocks,and I
can't do any scouting of stores to draw my own impression.
I understand that when they were allied with Tandy they made a marketing blunder when they went to stocking early american facisimile
furniture,that was a selling dud.
As you can see from their chart,they have the potential for a major
retracement in the longterm.It is my understanding that their 420+
stores are mostly,if not all Mall based.
They met First Calls estimate last quater at .31,and the three
brokerages that cover them rate them 2 strong buys and one moderate.
I personally don't see a downside at between 5 to 4 & 1/2.
So that's about it,hope it helps.max90 |
