This is based on the company earning 1.25 this year, up from .93 last year. A company with earning growing at 35% per year should command a P/E of 35-40. Also company has $3/share in cash, no long term debt, no analysts cover company and institutions only own 12% of stock. Insiders own 70%. These are all major positives. They had SSS of +5% over Christmas when most retailer were negative. They have 235 stores and will eventually expand to over 2000. Decades of growth ahead and they will open 13 new stores this year.
To all stock holders I'd invest my money else where. Cache stores are going to be having a drastic drop in sales, due to shabby business ethics. Consumers aren't going to tolerate it. There's too many other reputable stores.