Stockchase Opinions

David Driscoll Chico's FAS CHS-N BUY Nov 09, 2006

Same store sales were a little sluggish, but over the long run, their ability to grow stores of 100 to 200 a year, they’ll be able to get their same store sales up eventually. Speculative.
$22.220

Stock price when the opinion was issued

clothing stores
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WEAK BUY
Huge earnings growth (25/28%). Trades at 24/25 X earnings. Near its high.
BUY
Caller heard that he should buy the Wal-Mart in Mexico because it's cheaper. A: Wal-Mart (WMT-N) the parent will grow at GDP. Very over valued at present. Wal-Mart Mexico would be a better way to go. (Ed: Can't find a listing.) Prefers Chico's (CHS-N) which is starting to roll out more and more stores every year.
TOP PICK
Casual clothing. Had a decline in sales growth from 20% to 18% and the stock dropped dramatically. At this level, their growth rate is actually higher than their P/E ratio.
STRONG BUY
His pick of US retailing space. A turn around story, and are focusing on higher middle class, upper income women who are habitual spenders. Has a small position in it.
DON'T BUY
Women's fashion retailer. Had been very successful through the 90s. High-end fashions in the US. Sold his holdings about a year ago when management stubbed its toe by moving into accessories for the younger crowd.