Silicon Investor (SI) -- The First Internet Community

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.

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

To: Shane M who wrote (59298)	3/30/2017 11:40:19 AM
From: Micah Lance	Respond to of 78476

What's odd right now is there are so many of these smaller fashion retailers that talk about challenge of mall traffic and same store sales trends, but at the same time keep announcing store expansion plans. The wonders of cheap and easy credit at work. Plus if they don't expand then their competitor will. The cost of capital is extremely low right now, so if you combine this with very few capital allocation choices/poor allocation choices by management then you get the expansion you are seeing. I don't see why they are doing it especially considering that any change in their revenues could have large impacts on their ability to meet their principal and interest payments.