Stockchase Opinions

Mike Lyons CA, CFA Caleres Inc CAL-N BUY Jan 31, 2008

Trades at a very low price/sales multiple.
$17.190

Stock price when the opinion was issued

misc consumer products
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Likes the footwear industry. Very low multiple at about 25% of revenue and 11X earnings. Targeting to do about $2 a share in the next couple of years. If you put a twelvish multiple on this and get to 50% of revenues, it’s not very hard to get to $25 or $30.
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Stockchase Research Editor: Michael O’Reilly

The Famous Brand family footwear company has been in business over 125 years so its recent leveraged acquisition is not something new for them.  We like that it trades at 6x earnings, at book value and supports a 17% ROE.  We recommend setting a stop-loss at $12, looking to achieve $22 — upside potential of 22%.  Yield 1.5%

(Analysts’ price target is $21.33)