Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: mdudley69 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 28  
Subject: Re: frdm? Date: 12/9/2000 12:34 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2

The prior posts about how frdm may be bleeding
assets to a co-owned company, and chalking up
vanishing credit card earnings, whether true or
not, is enough to scare me off. Is the co-owned
Crescent privately held? There are insider
buys but the cash amounts are penny ante-
enough to show up on insider buying screens
but not much more. It's been dogging it
for two years, and 'undervalued' for more than a
year. If the company can't come thru with
shareholder value during the recent growth
economy, what's it going to do now?

It was however recommended as part of an article
on co.s trading at less than book value at
www.individual invenstor.com (archive, analysis
section, "screening for stocks below book value"):

That said, the discount jewelry retailer Friedman's Inc. (NASDAQ: FRDM - Quotes, News, Boards) trades at a mere 34% of its tangible book value of nearly $14 per share. At $4.75 per share, the stock also looks ridiculously cheap versus its trailing 12 month earnings of $1.38 per share, and the $1.62 per share it is projected to earn in 2001.

Not only has the company been posting 21% revenue and 38% earnings growth over the past two years, but Friedman's has also been actively reducing its debt. Insiders have bought 33,500 shares in the past year.

While we've met with Friedman's management in the past, and continue to think that the stock offers tremendous value, the stock has been cheap for a while now. For one thing, Friedman's is very small ($69 million market cap) compared to other jewelry bellwethers, like Tiffany (NYSE: TIF - Quotes, News, Boards) at $5 billion and Zales (NYSE: ZLC - Quotes, News, Boards) at $928 million.

Friedman's stock is also fairly illiquid, trading an average of just 46,000 shares a day. A combination of these forces all but force the most patient of value investors away from this ultra-cheap company.



Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Ringing the NASDAQ Bell
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement