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I called Catherine for their investor's package. They are trading at about $13 per share and have a 13 PE. A real deal these days. They expect earnings to grow to $1.25 next year ($1.00 per share this year) so expect the stock to increase to near $20 next year and in the range of $26 the year after. I expect that the PE will increase along with the earnings (at the same rate as earnings do) as more people begin to notice it and investors begin to buy.

Insiders own about 8 - 9% of the stock.

Net income is at 3% of sales. I am not sure if this is the industry average or not. This is seems low to me. What do you think?

It's a solid stock that is just coming out of some bad times and turning things around. They have no problem closing stores and opening new ones, and the cost of closing stores seems inexpensive to me. They recently changes their mix of clothes as you mentioned they are hitting the right audience. They train their employees to be helpful with the selection of clothes for their clients. Check August Worth's Magazine it's a fund managers pick of the month.
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