J o e 's has broken out in strong, powerful volume.
Stage 2 breakout will lead to long lasting, multi-month/year rally.
***** 10 Reasons for the Breakout *****
1. ZERO LONG TERM DEBT ***This alone is HUGE**
2. Moving production to CHINA - costs of jeans dropping - margins expanding
3. Else Jeans announced @ Macys for $68 - **expanding to 300 stores by Fall, tripling presentation, 141 stores launched already, total 700 Macys stores goal ***
4. 5 year growth rate 38% CAGR
5. Opening 100 new stores by 2017 (which lower cost model)
6. New e-commerce site being launched April 2012
7. Margins grew every year for past 3 years, exploding towards 30% goal
8. Recent distribution deals, Russia, UK, Germany....(international now 5% total revenues - massive upside growth potential)
9. Daily spotting of celebrities wear J o e ' s Jeans....Popping up in fashion magazines everywhere - brand has HIGH DEMAND.
10. $10.6 Million free cash-flow from operations in 2011 (and market cap is $60 million with no debt)
*** Clearly J o e s is highly undervalued.
As Else brand catches on and moves the demand/exposure for their jeans will explode
True Religion moved from $0.68 to $18 in about a year back in 2004. I see the same potential here with J o e 's
Do your research, good chance we go parabolic very shortly!
My target $5 - 25 within 1-3 years.