Hi, SCVL fans!, it's great to see that finally this undervalued stock is getting noticed out there. I posted a message a couple of days ago but for some reason it was not saved in the message board. Anyway, after today's numbers this company looks better than ever for growth although it has appreciated more than 50% since my first posting.This company has a lot of potential and I am sure is starting to get noticed by fund managers or maybe some brokerage house is getting ready to issue a "buy" recommendation. Insiders: I don't think they are grabbing more shares because they own almost 50% of the company. The CEO is very competent and a cost-cutter with a good financial background; also the Chairman of the Board and major stockholder was the CEO of Nine West giving him experience in the shoe industry. This company is ready to grow EPS 25% a year ""but"" it depends on how well they can manage to fuel top line growth. Again: for the last 2 years the company has been a turnaround: margins are now better than ever, store layouts are nicer, product mix offers a lot of value for the customers, concept of carnival atmosphere is original and fun, debt is low, etc, etc. Therefore, in spite of the fact that there are still some minor improvements to be made in operating margins, the real question is ""top line growth""!!!. To be honest, the first 2 months of this fiscal year 98' weren't that great. February was up nicely 9% with the same number of stores year over year, but March was up only 0.5% with 2 more stores. However, the GREAT SURPRISE came today: Same Store Sales UP 21.7% and SALES UP 26.6% to $22.8 million which will be enough to obtain an EPS for the quarter that will beat the Street estimates by at least a penny or two if not more. Thus, fasten your seatbelts because SCVL is just taking off for a long journey. The top line will keep growing because new stores are going to be open and the monthly comparisons for gross sales will include not only the stores open during a particular month but all the stores open up to that date.12-Month target: EPS Fiscal 98 =0.75 P/E = 24-27 Price= $18-$20 Anyway, this is just my opinion and Best Wishes in your investments and let's try to keep this folder alive!!!!!!!!
I agree with everything you say as I too have studied this stock and knew this was a very good investment. So, why is there so, so much activity with this stock on certain days with no news. I am hoping that maybe you know something I don't. I bought at 14 1/8 and have only watched it retreat since.
This is the way this stock moves because of its small volume. The fundamentals are sound and the valuation is attractive with a very reasonable P/E that has a great chance to expand. Patience is a must with this stock and I can tell you this based on experience. Last November I grabbed shares at 9, 9 1/2 and even 9 3/4 and then I saw it go as low as 7 1/2 by Dec/Jan when I grabbed more because the undervaluation was unbelievable. I still hold about half of my original position and I will add more if the stock goes below 11 where it will be a real bargain.Good Luck!!! and let's hope the best for SCVL
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