Detroit Bear
Deep value, special situations, long-term horizon, value

Can Francesca's Turn A Corner In 2014?

The legendary investor Peter Lynch attributed mall-shopping trips to uncovering some of his best investment ideas. While simply counting up the customers and bags within a given store is an oversimplified way of evaluating a company, it can give you insight into new stores as well as what's hot. Innocent retail clerks are almost always willing to give you too much insight, unless they've been coached against it (as is the case with Michael Kors).

Francesca's (NASDAQ:FRAN) has been on my radar since its IPO in mid-2011, though its share price has actually fallen 26% since. Earnings ramped significantly in 2012, but it looks like 2013 earnings are going to be relatively flat. Let's take a look at...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details