Claire's Stores (CLE) NYSE Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Claire's Stores (CLE) NYSE

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Charles L. Bushey who wrote (95)	1/5/1997 5:38:00 PM
From: Uncle Mikey	of 619

An alternate view on CLE: I took a look at the latest ValueLine writeup on CLE and found that the historical PE averages on CLE going back to 1992 were: 1992 12.8 1993 13.6 1994 11.9 1995 11.9 1996 16.5 - Note >The price spiked up to 26.60 in 1996 giving the stock a PE of about 26 for a short period of time. Also, earnings jumped from .66 to 1.00 in 1966; this larger than normal earnings increase and the higher PEs of the market in general could have been the reason for the spike upwards. Looking to 1997, earnings are projected to be $1.15 according to VL. This 15% increase from 1996 is more in line with the historical average growth of CLE than was the jump from 1995-1996. With all of this in mind it is reasonable that CLE would return to it's normal PE ratios. At a PE of 12x 1997 earnings the average price to be expected would be $13.80 during the year. Obviously it might spike upwards or go higher for a lot of other reasons. Looking at it's dividend yield, the average yield 1992-1996 was .8%. The yield is currently .93% a bit higher than average. With all of this in mind, my personal opinion is that CLE is not as undervalued as it first appeared. Mike

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next