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

To: Paul Senior who wrote (45575)	11/18/2011 6:55:16 PM
From: NikhilJog	Read Replies (1) \| Respond to of 78666

Paul - whats the story with PSS?

To: Paul Senior who wrote (45575)	11/18/2011 7:14:53 PM
From: E_K_S	Read Replies (1) \| Respond to of 78666

Hi Paul - I wonder if any of these retailers might have some leverage in negotiating favorable future store leases (especially if they have little or no lt debt on their books). For PSS and/or SCVL I doubt they own their store real estate. It might be a good time to exam all these retailers again (especially those that are in "Value" territory) to see if any are/were able to lock in long term store leases at bargain per sqft prices. This would bode well for better than expected earnings solely due to lower operating costs. I have not checked this recently but it might be one factor for me to nibble at a few of these retailers if I knew they were able to secure lower than average store lease rates. I think most feel that a double dip recession may no longer be in the cards. Shoe Carnival, Inc. (NasdaqGS: SCVL) appears to have the best margins and ROE but they still need to move a lot of product to really impact their bottom line. Perhaps the holiday season may be good for these retailers. Shoe Carnival to expand Eyes Dallas, Puerto Rico courierpress.com From the article:"...Shoe Carnival has 327 stores in the Midwest, South and Southeast. The company this year began selling merchandise at www.shoecarnival.com. The retailer plans to open about twice as many new stores next year as it has this year. <Clip> The 25 net new stores planned for next year, eight will open in Dallas and four will open in Puerto Rico. Jackson acknowledged that the company will incur additional costs as it enters the new markets. "Dallas is going to be a great market, we feel, for us, but it's going to be an expensive advertising market," Jackson said. Shoe Carnival's strategy, Jackson said, is to build name recognition in the Dallas market in 2012, then come back in 2013 and add additional stores in that area....". It's going to be difficult for retailers to compete with the online shoe retailers like Zappos.com (Now owned by Amazom.com acquired in 2009). They provide a compelling line of products. EKS