The company earned $32.3MM in revenues over the last 4 quarterly reports, but has a market cap of just $7.23MM. Therefore the company is being valued at just 22.2% of revenues, even after this most recent pop in the price. If the addition of Singing Machine products being offered in even more brick-and-mortar locations increases revenues more (which it should), then this stock is even cheaper than that. Even if revenues only stay flat, which is a very very conservative assumption, this company is still cheap.
Thank you, Captain Obvious!... Hahaha, just kidding. But seriously, I think this earnings report shows that just about any other profitable retailer is a better bet than GES right now.
Now my 1000 shares are back in the black, above my cost basis. Of course, that does not include all the shares I sold for a profit 2 years ago when the stock was trading in the high teens and low 20s per share, nor does that include the dividends I've been earning the last 3 years. I am excited for my AEO stock here. I am thinking I will sell the shares I own 100 shares at a time from $16 until $23, and the last 200 shares I can hold forever, as that is 'the house's money' I'd be playing with. We'll see though; either way, I'm still bullish on AEO.
So long as it keeps going higher... the volume can lead or follow, either way works so long as we keep getting higher highs and higher lows.
A little higher yet... the trend is in tact. It may continue all the way until the next earnings report. I would not be shocked to see SODA just shy of $40, or even breaking $40, before the next earnings report.
It's up 13% on triple its average volume. I haven't seen any news, and its quarterly report isn't for another two weeks. Anything specific, or did someone just purchase a lot of shares and cause a small rally by creating a short squeeze?
I say "SODA is the new DECK!" because the stories and results are very similar. Deckers Outdoor fell from $100 per share to $30 on some disappointment in growth and a lot of negative fears that they were a "fad" and that it was over. Then DECK took off from $30 back up to $100 again, resulting in 150% growth. I think SODA is copying that same playbook falling from $75 per share all the way down to $30. Now it is starting to turn around, and over the course of the next year or two, it could get back up to its previous high yielding a 100-plus% return on investment. Good Luck!
No, it's actually because all the funds (what Wall St. calls Smart Money) already pulled out, and now the only ones left in this stock are individual investors that are either upside down and can't sell, or those looking for a homerun on a lottery ticket stock (what Wall St. calls Dumb Money).
Better insight would be to realize that this company is NOT turning it around, regardless of the positive spin they tried to put on those horrible earnings during the conference call. They won't earn enough profit during back-to-school or the Christmas season to offset their massive losses the rest of the year.
Well, we only heard the word "excited" three times in the conference call, plus once more by one of the analysts calling in. I was hoping for an "excited" fest of political spin!... LOL! Nevertheless, they sure made $50MM in losses plus $30-something million in losses for next quarter almost sound positive. (chuckles again)
The trend is still your friend here!... We should continue higher with only slight resistance at $34.50, the high of this week, and then $36.00 (the price that SODA spiked to on the day of the buyout rumor). Enjoy! :-)
First off, I want to commend you on writing a well-written message (some of the people who post on these message boards write so poorly that I have to give them the benefit of the doubt by assuming English is their second or third language). Anyway, regarding the point of your message, yes, I thought Staples should have bought Office Max before Office Depot ever put in a bid for the company. Now that they are merged, Staples should either try to buy the company now, or try to continue to gain profits, and grow a cash pile. Then wait until the next next recession (the last two have been pretty deep), at which point, they could put in a bid for ODP at a fraction of its high before the recession.
However, Barnes and Noble did not take that route with Borders. They let Borders disappear, and they seem to be taking the same route with Books-A-Million. Since Staples is cutting its number of stores, maybe adding more brick-and-mortar locations by buying all the ODPs would be the opposite direction of where they want to go.
(In Honest Abe's bold voice) Two score minus 38 days ago we brought forth a new upbeat guidance (trailing out of bold powerful voice into a more disappointed voice)... yeah... nevermind that, this quarter's another one to forget. Just pretend it never happened.
Yeah, but it didn't happen!... They just reported a loss of just below $50MM, and they're expecting a loss of $34-37MM next quarter. If Christmas doesn't do well, they will burn $100 MILLION this year.
Hmmm... They've only used the word 'excited' twice so far. I was really hoping for an 'excited' every paragraph. They must not even be excited anymore... Hahaha!
It's going to be funny listening them to try to spin this huge hemorage of cash in a positive light. Let's see how many times they use the world "excited"... "We're gonna lose 100 MILLION DOLLARS this year, but we're EXCITED... blah blah blah...."
Hey Hottie! We meet again on this board again... I think our first encounter was on the Sprint board a couple years ago, and the SPLS board a few months ago, too.
Anyway, I agree that this P/E ratio in the upper-20s is high, but I think all they have to show--at least for now in this tough retail environment--is that they can pay the dividend without dipping into their pile of cash. You yourself just said that you have them earning 50 cents this year, that will cover the dividends without having to dip in their pile of cash. So investors looking for good dividend stocks now see that they have one here (the FED is giving investors nothing right now, so equities are the only option). Investors can earn a 4-plus-percent dividend while waiting for retail to turn around. AEO did have a 7% drop in Same-Store-Sales, but if they can turn that around by next year, the stock can head back to the 20s. I am more bullish than yesterday; it's huge reward with minimal risk (although you know I am a little biased as a long-time long).
Good luck to you, too, Hottie! :-)
The trend is definitely changing direction. AEO has shown it can weather the retail storm much better than the AROs and PSUNs of the world, and it will continue to do so. Everyone can enjoy their 4.2% dividend yield while the stock slowly heads back towards its stock price of last year and two years ago.
I agree with you there. The middle class is getting squeezed. However, the tech-revolution has a lot to do with it, too. Teens and/or their parents who used to spend all their money on clothes are now having to split it between cell phones, tablets, phone contracts, as well as clothing.