"While Talbots’s valuation is attractive, the balance sheet may deter a financial buyer, said Adrienne Tennant, an analyst with Janney Montgomery Scott LLC, who has a “sell” rating on the stock. A private-equity firm would need to lever up the balance sheet to reach requisite internal rates of return."
Incorrect analysis. Anybody buying TLB would pay all cash. If they could turn the operation around and get to the numbers by fiscal year end 2013 projected in Talbot's corporate presentation in October 2010, then this is a $15 stock. Tripling money will provided a very nice Internal rate of return.