• Go Contrarian to Your Investing Personality

    By AnnaLisa Kraft - July 11, 2013 | Tickers: CTCT, ITW, RUE, WAG

    Are you a momentum chaser or a value stalker? Whichever you are, getting out of your comfort zone might improve your returns.

    Maybe you're all about the yield, all you own are REITS and MLPs, utilities and defensive staples and you wouldn't touch Amazon with a ten foot pole. Hear me out...a speck of speculation, a small position won't hurt you very much.

    Maybe you are more »

  • Can You Find Value in the Teen Retailers?

    By Robert Hanley - July 8, 2013 | Tickers: ARO, PSUN, RUE

    Large institutional investors have been circling the teen retail sector in 2013 looking for value from retail chains with solid finances and national footprints. While teens’ fashion choices change as frequently as the weather, the teen cohort as a group has meaningful disposable income and the proclivity to spend rather than to save money.  In March, retail-focused investment firm Sycamore Partners agreed to buy teen retailer Hot Topic for roughly more »

  • You Should Worry About This Retailer

    By William Bias - June 24, 2013 | Tickers: BODY, RUE, MW

    On June 19 the board of directors of apparel retailer Men’s Wearhouse (NYSE: MW) abruptly fired its Executive Chairman and Founder George Zimmer. Management turnover is never a good sign for a company’s prospects. If you’re an investor you need to worry.

    What happened?

    The short answer is: Who knows?

    The firing of the well-known business figure famous for his catch phrase, “You’re going to like more »

  • A Trio of Retailers Report Disappointing Quarterly Results

    By Ryan Glosier - June 12, 2013 | Tickers: ASNA, RUE, VRA

    On Wednesday of last week, after the closing bell, a trio of retailers reported their quarterly earnings results. The reports raised questions about the state of the American consumer as all three companies slashed their forward looking guidance. Another specialty retail company, Francesca's Holdings, reported sales that missed Wall Street expectations. That stock was trading down around 9% on Thursday afternoon. Although it would be a mistake to read more »

  • This Incredibly Profitable Retailer is Being Acquired

    By Anh HOANG - June 6, 2013 | Tickers: ANF, ARO, RUE

    Recently, the specialty apparel retailer rue21 (NASDAQ: RUE) agreed to be bought out by Apax for around $42 per share in cash, with the total transaction worth $1.1 billion. Thus, since the beginning of the year, rue21 has more than doubled from only $20 per share to the acquisition offer of $42 per share. The company will have 40 days to seek better offers. Does rue21 have a fair more »

  • Are These Companies Buyout Targets?

    By John Timmes - June 4, 2013 | Tickers: ARO, AEO, RUE

    If you have been following the deal pages recently, you may have heard about the deal to take rue21 (NASDAQ: RUE) private... again. You see, Apax Partners, the private equity firm that took rue21 public back in 2009, has now offered to buy the company for $1.1 billion. Apax currently owns 30% of the stock in the company.  The offer represents $42 per share, or roughly a 20% premium more »

  • 5 Teen Retailers Vie for the Coveted Title of Miss Wall Street High

    By Erin McBride - May 28, 2013 | Tickers: ANF, ARO, AEO, GPS, RUE

    This is a tale of five teenage girls at Wall Street High School. Each one was known for her clothes, and setting the standard for fashion at WSHS. And just like at every high school in America, there is a popularity contest and fierce rivalry between these frenemies. Each one wants to be crowned, "Miss Wall Street High," but first she has to earn it with her quarterly earnings.

    "I more »

  • 3 Small Cap Plays on Rising Retail Sales

    By Leo Sun - May 15, 2013 | Tickers: FRAN, RUE, VRA

    A recent report from the U.S. Department of Commerce showed an unexpected jump in retail sales for April, which rose 0.5% year-on-year after an anemic 0.1% gain in March. Excluding gas and auto sales, retail sales rose 0.6%. Economists had originally projected a 0.3% decline in April.

    Strong sales of building materials, clothing, sporting goods and electronics boosted retail sales, which account for 30% of more »

  • Is This Stock Worth Buying?

    By Shas Dey - April 3, 2013 | Tickers: ARO, AEO, RUE

    rue21 (NASDAQ: RUE), a specialty apparel retailer, reported 4Q12 results with sales increasing 22.4% to $269 million, compared to consensus estimates of $203 million. Same-store sales edged up 0.5% as against expectations of negative low-single digits. Further, despite the promotional environment, gross margin improved 110 basis points to 37.6%. In line with its peers, it has guided for (2)% same store sales in 1Q13. Let us compare more »

  • Body Central: A New Hope

    By William Bias - March 18, 2013 | Tickers: BODY, RUE, WTSL

    Apparel retailer Body Central (NASDAQ: BODY) struggled throughout 2012. Same store sales and net income fell 8.1% and 40% respectively. Operating margins declined 44 basis points to 6.2% during the year. February 2013 saw the beginnings of new hope with the appointment of a new CEO, the ousting of merchandising Vice President Beth Angelo, and the installation of a new merchandising team. Body Central may serve as an more »

  • Avoid This Retailing Value Trap

    By William Bias - January 22, 2013 | Tickers: BODY, RUE, WTSL

    On Jan. 15, Body Central (NASDAQ: BODY), a specialty apparel retailer catering to young women,  announced 4th quarter 2012 sales results and issued another downward revision in guidance. Net revenue increased a microscopic 0.4% with comparable sales (stores open longer than a year) declining 12%. Full year EPS guidance now hovers in the $0.68 to $0.70 per share range representing a 44% to 43% decline from the $1.22 reported in 2011. Body Central’s stock declined 65% since the beginning of 2012 (see chart below) and currently trades with a P/E of roughly 9. With that said, Body Central is a value trap to be avoided.

  • This Retailer is Too Cheap to Ignore

    By Anh HOANG - November 21, 2012 | Tickers: ARO, BODY, RUE

    With the small cap series, I would like to talk about small cap opportunities the value investing way. Warren Buffett mentioned that he could make higher returns with a smaller amount of capital, such as 50% yearly on $1 million dollars.  I think with a small amount of capital, he would focus on undervalued stocks with little analyst coverage and competition from other investors. However, the small cap stock might more »

  • The Trip to the Bottom Continues…..

    By William Bias - November 9, 2012 | Tickers: BODY, RUE, WTSL | Editor's Choice

    On Nov. 1, specialty apparel retailer Body Central (NASDAQ: BODY) came out with its earnings announcement and had its conference call. This announcement confirms that Body Central’s trip to the fundamental bottom continues. Its comparable store sales declined 12%. Net revenue edged ahead a mere 1.2% due to unjustified store expansion. Net income declined to $153,000 versus $2.8 million this time last year. After four months of observing Body Central I came up with four issues that this company can’t seem to resolve. It’s “curtains” for this company unless they can come up with some viable solutions for these problems.

  • What Caused This Retailer's Runaway Run-Up?

    By William Bias - October 5, 2012 | Tickers: BODY, RUE, WTSL

    Body Central (NASDAQ: BODY), a lady's apparel retailer catering to women in their teens and twenties, has shot up 24% in the past month. No buyout rumors or hot product lineup seems to have driven this sudden surge. Instead, these four reasons may explain why Body Central's shares rose -- and whether they'll keep rising.

  • This Apparel Maker has an Overlooked Jewel!

    By Daniel Sparks - September 14, 2012 | Tickers: COLM, NKE, ZQK, RUE, BKE

    A few weeks ago I wrote an article on Quiksilver (NYSE: ZQK) entitled, Quiksilver: An Undervalued Turnaround. On the day I wrote it, Quiksilver was trading $3.05 per share. Quiksilver's stock soared higher after its earnings release and it is now trading around $3.61 per share, up over 18%. Now a question lingers for Quiksilver investors: Is Quiksilver still undervalued? I believe it is. In fact, I more »

  • Body Central Continues to Struggle

    By William Bias - August 7, 2012 | Tickers: BODY, RUE, WTSL

    In, Is Body Central a Value Trap?, I talked about how Body Central’s (NASDAQ: BODY) 66% decline from its 52 week high to the price of $10.56 on 07/09/12 was a value trap because of a decline in same store sales of 1.4%. It had a total debt to equity ratio of 48% as of the 1st quarter and growth in free cash flow of 54% between fiscal years 2009-2011, which is excellent, but I saw the decline in same store sales as the beginning of a worrisome trend. I also discussed how management didn’t expect any improvement until the holiday season. The earnings announcement that came out on August 2, 2012 is not doing anything to change my mind about the continuation of the worrisome trend. The stock price has dropped another 23% as of close on 08/06/12.

  • Is Body Central a Value Trap?

    By William Bias - July 13, 2012 | Tickers: BODY, RUE, WTSL

    As a value investor I look for companies that have experienced steep declines in stock prices and still have excellent fundamentals such as excellent growth in free cash flow, low debt to equity ratios, and high return on equity. Sometimes a company can fall for a good reason such as threats to the underlying business -- new competitors, declining demand for a product or obsolescence. This is called a value trap. The saying goes if it’s too good to be true then it generally is. If I see a stock price that has fallen then there is a good possibility that there is a good reason for it. >>More

  • The Good and the Bad for Talbots: What about the Ugly?

    By Rita Chattaraj - May 29, 2012 | Tickers: ASNA, KSS, RUE, TLB

    On Friday, the stocks of Massachusetts-based retailer Talbots (NYSE: TLB) took a hit as the company offered strong bad news and relatively weaker good news. The troubled retailer, which was in talks with a private equity firm Sycamore Partners for getting acquired, announced that the deal was off and as an instant reaction of Wall Street, the stock price plunged 41%. Even the company’s improved fiscal 2012 first quarter more »

  • You'll RUE The Day You Short This Stock

    By Chad Henage - March 26, 2012 | Tickers: ANF, AEO, RUE

    Sometimes shorts bet against stocks that seem to have all the right numbers, in all the right places. On a recent screen using Motley Fool CAPS Screener, I found rue21, Inc. (NASDAQ: RUE). As a percentage of float, 44% of rue21 shares are sold short. The amazing part is in the last 3 years, rue21 has over 20% revenue growth, and nearly 40% EPS growth. In addition, rue21 has an over 30% return on equity. With the CEO Robert Fisch owning over 1 million shares, he has a vested interest in making this company successful. So why are shorts betting against this company?