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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (29314)	12/18/2007 7:05:07 PM
From: gcrispin	Read Replies (2) \| Respond to of 78740

I'm not into retail stocks, but if I was to buy one, it would be ROST. Compare the metrics to CWTR. finance.yahoo.com For a slightly higher valuation, you're are getting a company with rising earnings, increased Nov. sales comps, an expanding national footprint, and a dividend. Ross's ROE dwarfs CWTRs. Check out the short interest in both stocks. Where is the value in a stock where 24% of the float is short? Just like Pier One, I believe CWTR is a value trap. In my opinion, ROST is the safer pick. Using the Peter Lynch "shopping" test, recently, my wife went to Macy's to buy a household item. She couldn't find anybody in the department to help her, so she left and stopped off at Ross. She found the identical item at a much cheaper price.

To: Jurgis Bekepuris who wrote (29314)	12/18/2007 11:12:56 PM
From: Asymmetric	Read Replies (1) \| Respond to of 78740

Dunno about Chicos and Talbots, but I ruled out Coldwater. What's the point of expanding if you're increasing overall revenue, but not making any money for all your pain and efforts. Short interest in the stock has increased from 20% on Sept 5 when the stock fell to $15 and change, to 24% today. Last two earnings reports were atrocious which is why the stock is down 71% in last 6 months. Management went from forecasting a small profit, to flat earnings, to forecast a 11-12 per share loss, which they beat in their earnings report on Nov 28 with a loss of only 7 cents. I don't think you should get points for beating your own low ball guidance from 3 months prior. Dennis Pence, the guiding hand over the company since it's founding retired on Oct 30. Don't know much about the new guy, Griesmer, except that he's got some years on him in retail. An old article in the Spokane Spokesman-Review describes Coldwater Creeks’s humble beginnings: “Pence and his former wife, Ann Pence, founded Coldwater Creek in 1984, after making a quality-of-life move to Sandpoint from New Jersey. He was a former marketing manager for Sony Corp. She was a freelance advertising copywriter. . . . The couple arrived in Sandpoint on Christmas Eve in 1983 with $40,000 in savings. They launched a small mail-order business from their apartment, exhausting their savings and a line of credit before Coldwater Creek finally turned a profit in 1985.” They built CWTR into a $1 billion dollar company...before this latest downturn. How many people can say they've done something like that? Oh well. - A.