Two Cheap Retailers Worth Owning

Includes: CBK, CHIC
by: Eric Fox

Here are two cheap retailers that fill three requirements, they have a large amount of cash, little or no debt and have sold off significantly the last year. Can they get cheaper? Sure, but as a former co worker of mine used to say, "you got to own something."

The first up is Charlotte Russe Holding, Inc. (CHIC) - it has $125 million in cash, or about $5.00 per share, as of 3/29/08. After the quarter ended, CHIC bought back 16% of its shares for $73.4 million. This reduced its cash balance to $52 million, still a nice nest egg, and no debt. The stock has lost about half its value over the last year, and is at $17.87.

The second stock is Christopher Banks (NYSE:CBK). The company has $78.5 million as of March 1, 2008. Unfortunately for them, another $24.5 million is locked up in Auction Rate Securities. The share count is 35 million, so depending on what you use as your numerator, the company has either $2.00 or close to $3.00 per share in cash. The stock peaked at $30 and is now at $10. No debt either for them.

Disclosure - No position in either of these stocks.