The two cheap retailers that fill three requirements, they have 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 (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.
The above story is the opinion of the author only and it does not reflect
iStockAnalyst opinion. Further, the author is not personally advising you
regarding the suitability of the story for your investment needs. In no event
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limitation, indirect or consequential loss or damage, or any loss or damage
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information. Please consult your investment advisor before making any investment
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