Simple Qualitative
Long/short equity, growth

Five Below: Overvalued And Unproven

Five Below (NASDAQ:FIVE), a small-cap player in the discount retail industry has performed exceptionally well since its initial public offering late last year. The IPO, led by Goldman Sachs & Co. (NYSE:GS), was highly anticipated as the market wanted another super discount player to trade alongside Family Dollar (NYSE:FDO), Dollar General (NYSE:DG), and Dollar Tree (NASDAQ:DLTR). If you're not familiar, Five Below offers consumers a broad range of "trend-right", high-quality merchandise targeted at the teen and pre-teen customer. All of the company's merchandise, as the name suggests, is priced at $5 or less. The company sells an array of media accessories, crafts, candy, and inexpensive sports merchandise. Shares priced at...

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