GBA Presents: RADIO SAVANT-!

vanzandt said:
Stoney!!!

PLCE is kind of a daring call in this environment.
So why did I call it out then?

Well, for one it's real cheap. It has a PE of 4ish, solid balance sheet, 2.5 EV/Ebitda, it trades at 2.6Xcashflow, ROA 17%, ROE 117% (!) , its nearly 100% institutionally owned, the stores are classy, they own Gymboree too, and their target demographic is pretty much affluent suburban moms with credit cards buying for their kids. They're not scrimping, they want their kids dressed nice. No recession there. (Yet lol)

Of note there have been 8 insider buys in the last 3 months, all relatively small, but one in particular that caught my eye was March 23th. Two insiders bought about 2500 shares each on a day the stock dropped nicely. It had been $53 the day before and dropped to $49ish. They bought the dip.

The damn thing dropped 10% today, and I have to think that was mostly index selling since folks couldn't get out of retail fast enough. Did this one deserve to be punished like that? Probably not, I mean it is cheap. And solid. The retail sector etf's aren't going away and they'll have to adjust some holdings, ie dump the dogs and add more quality. Short interest is pretty high though. 20% so... ya never know.

Well run clothing stores, especially those that cater to the target demographic I noted above, always seem to do well in recessions. The Limited and all its various (now spun-off) stores always held their price levels and even gained through many turbulent markets.

Anytime one sector gets hit particularly hard, there's always a few outliers in that sector that go way up. The Container Store today is a good example. Up 7%.

So I dunno Stoney. But that's my analysis for now. If it drops 25% tomorrow... I better not hear boo from you lol. I tried to find us a beat down diamond in the rough. Not an easy task on a day like today. That's why I waited until the last 10 minutes to post it. Hopefully our "think about the children"- children didn't have time to get in. :cool:

EDIT:
One thing I might have missed though, and I really do try to keep no stone unturned so I'm mad at myself for this, but I hope their international division doesn't generate a lot of its top line from Russia or Ukraine. I should have looked. Oh well, it's too late now I guess. :banghead:
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WTF! The Children are sad Van. :confused: Crap ass market. Did you get out in time?


The Children's Place, Inc. (PLCE)
NasdaqGS - NasdaqGS Real Time Price.
42.10-3.55 (-7.78%)<-----------:caution:
As of 11:11AM EDT. Market open.
 
vanzandt said:
I dunno Stoney. It's risky.
A forward PE of 25 and projected 5 year growth annually at 15% gives it a PEG of 1.67.
That scares me in this market.
Option volume today is very bearish.

Don't yell at me tomorrow if I'm wrong, but I think you should get on the sidelines.
Unless they announce they're buying something.
They do have a lot of cash.
Do they have a buyback in place?
They might announce one if not.

Is it a glorified one trick pony?
It kinda is.

Those options wouldn't be this pricey if it was a slam dunk to the upside.
21% move in one direction or the other being priced in.
At $108 that would give this thing a trailing PE of about 27 if they come in at the top of estimates.
Is it worth that for 15% growth?
Not really.
But like I said, maybe they'll do something with that cash hoard.
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No no your right. Make it prove it. IT IS A ONE TRICK PONY BUT COULD THEY CHARGE A SMALL AMOUNT FOR THAT TRICK? I DUNNO. FACETIME IS FREE.

TOO RISKY.

ON TO SPLUNK.
 
I realize I sound stupid but Pfizer is kind of breaking out.

$49-$52 I must have a dozen posts...

Pfizer Inc. (PFE)
53.24+0.77 (+1.47%)<--------- Slow.
As of 11:18AM EDT.
 
I know it's boring but HF bought me Coke this morning.

The Coca-Cola Company (KO)
NYSE - Nasdaq Real Time Price. Currency in USD
63.02+2.04 (+3.35%)<-----------:thumbsup:
As of 11:19AM EDT.
 
Van I know you said we should do shorts. I don't like them usually.
I'll just say LNG has had PT upgrades twice over the past week or so and gone down. Very bad sign.



Cheniere Energy, Inc. (LNG)- not looking good
129.41-0.99 (-0.76%)<----------
As of 11:22AM EDT. Market open.
 
stonedinvestor said:
This is the " hot " list?


#1 >>> Splunk>>> sell before Weds though

#2 PATH>>> Buy at $17.20

#3>>> BlackRock
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Message from the Captain.

Hi ho. Permission to board? Well you see even on a greatly up day how hard it is to tell people what to buy.

I think this a clever exercise to show these other ET'ers // what we do is hard work.
 
Just to show I'm not immune. Stock Of The week hardly budging! First flight of formula came in and my sources told me it was filled with Nestle's formula.

Reckitt Benckiser Group plc (RBGLY)
Other OTC - Other OTC
15.89+0.10 (+0.63%)
As of 11:14AM EDT.
 
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