Stock went to $7.50 today and the reason is...?? the reason is...the Democrats were all over the TV last night. Do they have an exclusive deal to make President Obama dolls? I'll wait alittle longer to see if I am correct.
Only bullish thing about BBW is that it couldn't be more beaten down. Everyone knows the fad is dying. With continued falling SSS, individual stores will become unprofitable and will have to be closed with accompanying write offs, most likely. That's why the P/E is so low.
As for charts: you got an historic one of preteen girl fads? Straight up; straight down, usually.
Strongest day of buying, in terms of volume accumulation, in some time yesterday.
I am holding for a $15-$20 price per share next year as the economy recovers, same store sales actually rise, and the cost cutting being done in 2008-2009 by management translates into SHARPLY higher profitability next year!
Don't count your chickens... Word I hear from current employees is that the management cuts are creating a depressed emotional state in many stores, it puts a larger burden on each employee, and changes the morale in the stores which can directly affect profits. You're looking at it from a strictly cost/bottom line view, which is exactly what BABW has done, and it has been a mistake. BABW should have stuck to their guns and made sure the "entertainment experience" aspect of the business was exemplary, rather than pared back as it is.
How do you know that there will be " SHARPLY " higher profits next year. No one knows what next year brings. This is why I write because some people proclaim that the economy will recover and customers will come running into the stores. Hogwash! We are in a recession and might enter a depression. Banks are failing. People are losing their homes and now must work two jobs. Food and energy prices are rising. Your ID might have changed but you sound familiar. If you work for BBW or are doing PR work please fess up.