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I have lately become interested in Pacific Sunwear (PSUN), which appears somewhat Tweeneresque to me. It has a market cap of just below $1 billion, and seems to have successfully marketed itself to the big-spending 12-24 age group. It has experienced some impressive growth over the last couple years, and has found itself a new market in d.e.m.o, an outlet it acquired a few years ago. They plan to open 125 new stores this year and kick off a massive TV ad campaign.

It has some negatives, though: its cash flow ratio's a bit on the high side (over 2, by my quick-glance estimate), and despite the growth it's still about 1/40 the size of the Gap.

Help a newbie Fool and comment ... any holes you can poke in PSUN or my comments?
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No. of Recommendations: 0
I have lately become interested in Pacific Sunwear (PSUN), which appears somewhat Tweeneresque to me....Help a newbie Fool and comment ... any holes you can poke in PSUN or my comments?

I strongly recommend you look up the SEC filings for yourself and run the numbers through the Rule Maker criteria, and see how PSUN stacks up. Go back as far back in history as you can, at least five years if possible. I've found looking back a few years can give one a better perspective on a company as a Rule Maker, which is what you really want if you think it is a Rule Tweener.

They plan to open 125 new stores this year and kick off a massive TV ad campaign.

Then I would watch debt like a hawk. Rule Makers carry low debt loads, which may not be the cast here.

Good luck!

-rundwp


PS-you can find the SEC Edgar database of SEC filings at www.sec.gov
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