(1) Soon CWTR will be leveraging the SG&A. Meaning as they add more retail stores, they won't be adding more corporate office support. This equals expanding margins which means faster earnings growth;
(2) Direct sourcing initiative is on-track. This is resulting in better margins which again "=" faster earnings growth;
(3) Major landlords are tripping overthemselves to have a Coldwater Creek store at their complex. They are offering better lease deals in order to bring CWTR to them. This means less cost per square foot and more margins from new openings.
(4) More institutional ownership pushing high volumes which will attract the traders and send the stock price catapulting to new highs.
(5) More analyst coverage providing more positive exposure.
These are my favorite catalysts for the next 6-9 months. Earnings growth is going to sling-shot in a big way. This stock will be at the top of the IBD tables because of this. Momentum players sometime in the next 6-9 months will get a hold of this stock and send it flying like a HANS, GOOG, DXPE. P/E ratio will be irrelevant. Market cap will make no sense. It won't matter. All that will matter is that CWTR continues to crash analysts' estimates and the stock chart looks strong. We are likely one Fed rate cut away from this.
So get ready folks. Build your position. All this said, I think there is a very high probability that irrational exuberance will take hold sometime over the next 6-9 months. Prepare now for the ride.
You know it, buddy. We'll have 1000 jibbering idiots the 3 days before the conference call, and then they'll slink out of town after Georgia hands their heads to them and depletes their brokerage accounts!
You are absolutely right, however, I would rather make a "dime a day" and not be known than a flurry in the stock price and naked for every copycat to see! I've been through many "flashes in the pan" scenarios, and the bottom line a times isn't too nice. I've been an owner for three yrs. and like it slow and easy.....