Body Central Stock Discussion - Opportunity or Death?
I visited the store at the Avenues Mall in Jacksonville, FL, at 7:15pm. It was honestly much busier than Wet Seal, American Eagle, Pac Sun. I did not walk the whole mall this time and that was a mistake. It attracted an older audience than I believed. It could be the time of day or that Body Central is geared toward this "older than i though customer". Please provide input here if you think that is a good or bad sign. I found the clothing to be very clubby and embellished, and that for my eye was honestly not classy but there were more customers than most of the other stores I passed.
1) SG&A is too high and boosted.
2) They waited too long to install traffic counters.
3) Slow down new store openings until a positive sales trend emerges.
4) Why did their research on the customer just end in July? How long has this research been going on?
5) Current new management has already been behind the ball on marketing their new focus.
6) Do not spend too much on store upgrades $25,000 or less (please buy some replacement signs for your old ones).
7) The store was stocked very high and they mentioned that on the call.
8) The store is too black in color like they said.
Store visits in general prove to be of little value to retail investors like us. There are so many variables that we cannot take into account - time of day, day of week, store location, etc. It's best not to make judgement based on store traffic or lack of it at the particular time you go.
Many of your points are items which PacSun has gone through over the past 2 years. Their success in turning things around is questionable. The numbers don't really show it, but for some reason the stock has been bid up this year as the analysts have become positive on it.
As I mentioned in other posts, I think this is just the beginning for BODY - it will be a long road to recovery - well into next year to see potential results. In the mean time expect losses to continue. The cash pile will be drawn down. If you are basing your valuation on the amount of cash - remove 50% to 75% of the cash from your calculations and go from there.
a few facts this is going into a week selling. There is alos a quiet period 10 or so days before and after a earnings release.. The volume is decreasing daily. BODY has only 16,mil shares which lends itself to severe drops on selloff situation. The daily Bleed in share price is not devestating but setady from the second day of .50 to .20 to .19 and thus far today has held the 7.10 of yesterday.
This is apples and oranges but look at STRL similar float. it had significient loss and very little drop. Too Bad as I was wanting soem cheap shares there..
Cash in BODY is very good and the loss was actually only .15 without the write off. Look at Reuters Financials that siet gives earnings history and projections. BODY does not warrent a 40+% haircut.
In trading a stock there are a few circumstance one is the first a lot of bottom feeder traders jump on it. some of those are 3 day or so traders so they add to the selling when no bounce occurs. When the sell er is done and the weak hands are out IMO Body will start a move up.