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
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