Chicos Provides Long Term Opportunity
I have had Chicos Fashion (CHS) on my radar for a while now and I like where it is.
This is a growing company, no debt and great cash flow.
At its current price of $7.30/share, I consider it as being on sale and wouldn't hesitate to start acquiring shares.
The company has closed an underperfoming business purchase and is reviving and expanding existing stores as well as closing underperforming stores.
It runs the Chicos, White House Black Market and Soma chains, all popular with their demographics.
It has been severely battered along with other retailers even though its demographic is less affected by an economic downturn and is now selling at a discount of more than 30% of its intrinsic value in my opinion.
Insiders are also buying in good measure, which is a more positive sign and carries more weight in terms of what insiders believe about a company's future compared to their selling.
I have had Chicos Fashion (CHS) on my radar for a while now and I like where it is.
This is a growing company, no debt and great cash flow.
At its current price of $7.30/share, I consider it as being on sale and wouldn't hesitate to start acquiring shares.
The company has closed an underperfoming business purchase and is reviving and expanding existing stores as well as closing underperforming stores.
It runs the Chicos, White House Black Market and Soma chains, all popular with their demographics.
It has been severely battered along with other retailers even though its demographic is less affected by an economic downturn and is now selling at a discount of more than 30% of its intrinsic value in my opinion.
Insiders are also buying in good measure, which is a more positive sign and carries more weight in terms of what insiders believe about a company's future compared to their selling.
posted by Shegun at
4:50 PM
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