Jeffrey Himelson
Long/short equity, value, contrarian, research analyst

Tillys: The Market Is Not Realizing Its True Potential

The stock market is generally a mechanism which enables securities to be fairly priced. However, there are situations in which securities are unfairly priced due to a number of reasons. In the case of Tilly's (NYSE:TLYS), the market has discounted this niche retailer too much, which has led to an undervalued opportunity. Comparable store sales have declined in the last fiscal year, and as of the first quarter of 2014, which has led to a slew of analyst downgrades. The stock trades at just half of its IPO price in 2012, and is near an all-time low. The sales decline should not worry investors too much, as the industry is cyclical and is experiencing an across the board...

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