Friday, May 23, 2014

Seeking Alpha: Stage Stores On Sale Again

Stage Stores (SSI) is giving its shareholders a roller coaster ride through retail. I liked the shares in late January, after which they climbed about 20%, and then pulled back a bit on the enthusiasm in early March. The shares have fallen 27% since then and while the company did get the year off to a disappointing start, I think there's a lot of value in this small retailer.

Stage Stores not only has self-improvement potential from new and improved markdown and assortment initiatives, but also from accelerating e-commerce, store refurbishments, and private credit cards. Add to that the fact that Stage Stores is one of the relatively few department store-style retail stories with meaningful square footage growth potential, and there's a good growth element as well. I do think the next quarter or two could still be pretty turbulent, but I believe these shares should trade closer to $25, suggesting nearly 40% undervaluation.

Follow the link for more:
Stage Stores On Sale Again

No comments: