MIK stock has soared since announcing Ashley Buchanan as its new CEO last week.
The optimism makes some sense: this is a company in need of new direction, while shares remain among the cheapest in the market on a P/E basis.
But Buchanan has his work cut out for him, as margins and sales are trending quickly in the wrong direction.
As cheap as MIK is, it will take big moves to make this stock a buy.
It's true that Michaels Stores (MIK) stock is one of the cheapest issues in the market. It's also true that Michaels is in very serious trouble at the moment, which supports that valuation.