| Stock (Symbol) | Stock Price | |
Body Central (BODY) |
$24 |
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| Data is as of | Expected to Report | Sector |
April 16, 2011 |
Jun 23 |
Retail & Restaurant |
| Sharek’s Take | ||
 Body Central’s (BODY) numbers — and clothes — look sensational. Body Central is a clothing store for young fasionistas. The clothes, which can be viewed here, are stylish while remaining affordable. Ladies in their teens and 20s are loving this store. Same-store-sales were up 15% last quarter and the company predicts teens same-store-sales growth this quarter as well. Profit margins jumped from 6% a year ago to 11% last quarter. BODY also has no debt. Even the company’s cash grew to $16 million last quarter from $7 million a year ago. Body Cantral had only 209 locations at the end of 2010 and should be able to grow the store count 15% a year. 15% annual store growth combined with same-store-sales growth AND margin expansion put this stock in an elite class.One negative is this is just a retailer with no barriers to entry. Body Central depends on its buyers to find hot styles. |
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| One-Year Chart | ||
 There has been heavy buying of Body Central stock over the past month. I think institutions are taking strong positions in the stock. The jump from $17 to $23 was made after BODY announced earnings last quarter. Even today the marker is getting creamed (Dow down 200) and BODY is one of only a few stocks up on the day.Profit growth has been triple-digit since the IPO last fall, and that looks to continue for at least another quarter. |
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| Earnings Table | ||
 Body Central’s profits jumped 150% last quarter as sales rose 20%. same-store-sales increased 15%, a great sign this store is hot.BODY just went public last October, there was only one quarter of analysts estimates to beat/meet/miss and BODY missed by a penny last quarter. Annual Profit Estimates jumped higher. The 2011 estimates assume only high-single-digit same-store-sales growth. Managament already said this quarter will be in the teens, so I’m assuming 2011 estimates will go higher. Next quarter’s estimate jumped 12 cents — with excellent growth set to continue. |
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| Fair Value | ||
 What’s BODY worth? Let’s use a P/E of 30 to start with. The numbers mentioned in Sharek’s Take are beautiful. BODY has solid upside to Fair Value this year and next — but this could turn out to be a long-term winner as the store count could triple eventually. |
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| Ten-Year Chart | ||
 The ten-year chart doesn’t have much. The stock has done well since going public. Profits are expected to grow 37% this year. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
8 of 20 |
BODY will enter the Growth Portfolio. Power Rankings ranked 8th of 20 stocks. I will sell Cognizant Tech Solutions (CTSH) to make room because CTSH’s competitor Infosys (INFY) warned last week and I think CTSH could warn too. CTSH is selling around its Fair Value. I will aslo sell Bridgepoint Education (BPI) because education stocks are in the doghouse and BPI lowered estimates after reporting last quarter. BODY is ranked 5th of 10 stocks in the Aggresive Growth Portfolio. Don’t get carried away and load-the-boat on shares of BODY, this is a new company with little consistency. I will sell Express Scripts (ESRX) in this portfolio (but not the Growth Portfolio) because ESRX didn’t up estimates after reporting last quarter, and that takes away from the stock’s near-term timeliness. |
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Aggressive Growth Portfolio
5 of 10 |
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