"Black Friday: Only in America people trample others for sales exactly one day after being thankful for what they already have" - Anonymous
Since it tis the season, seems appropriate to make the case for a small retailer that looks like it is off to a good start to the biggest part of the shopping year. For speculative investors, the stock below might worth further consideration.
New York & Company (NYSE:NWY) is a specialty retailer of women's fashion apparel and accessories in the United States. It operates over 525 retail stores in 43 states
6 reasons NWY could be a good speculative play at just over $3 a share:
- The company should have a much sunnier 2013 than 2012. NWY should post just under a dime a share in total losses in FY2012, but analysts have the company reversing that performance in FY2013 as it is projected to post more than a dime a share in earnings in FY2013. This continues a turnaround as the company lost over 60 cents a share in FY2011.
- New York & Company has a solid balance sheet with over $40mm in net cash on its books (some 20% of its market capitalization).
- Oppenheimer just came out with comments stating NWY was a "standout" in what it saw early in the holiday shopping season and has an "outperform" on the stock as well.
- The company has beat earnings estimates each of the last four quarters. The average beat over consensus during that time span has averaged 25%. Next earnings report is due November 28th.
- The stock is selling for just a little more than 20% of annual revenues, near the bottom of its five year historical average. Insiders hold over 50% of the shares and there has been next to no insider selling over the past two years.
- NWY is trading medium term technical support levels (See Chart).
Disclosure: I am long NWY. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.