Can anyone give any valuation metric for JOEZ that would justify the share price north of $1.50? They have almost no forward earnings, so they trade at high forward PE currently. It looks like this holds the current share price based on book value.
What are comparable valuations for other fashion resellers that lack any positive earnings?
You can only base your opinion based on the last 2 quarters while backing out merger related costs. Listen to the conference calls about the cost savings that will be appearing in full force in Q3 from the Hudson merger. i think they can be very profitable going forward and this valuation is currently ridiculous.
Junior is correct, excluding Hudson closing costs they made $.03 in q4 while only having Hudson for 2 months of the quarter and were break even in q1 (again excluding closing costs which are now fully recorded going-forward). This shows they have no problem covering the interest related to their debt associated with the Hudson purchase and when the cost savings kick in during Q3 look out above b/c these prices will not last this low...