| Stock (Symbol) | Stock Price | |
Body Central (BODY) |
$15 |
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| Data is as of | Expected to Report | Sector |
May 9, 2012 |
Aug 10 |
Retail & Restaurant |
| Sharek’s Take | ||
 Body Central (BODY) warned after reporting last quarter. In last quarter’s research report I said Body Central “missed with their style selection this Spring”. Still, with this news already out, the stock went to new highs during the quarter. Now 2012 estimates just fell from $1.51 to $1.35 (-10%), but the stock was hammed from $30 to $15 (-48%). That’s too much of a fall, but May has been tough on a lot of stocks that lowered estimates. Many names have been hammered this month after guiding down even a little — its just that kind of month.Now, at 11 times earnings, BODY is too low to sell. |
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| One-Year Chart | ||
 The 6% profit growth that occurred last quarter was known about in advance. Investors gave BODY a mulligan on that. Now profit growth looks to suck next quarter, then rebound.BODY has a P/E of 11 and an estimated Long Term Growth Rate of 20%. A 20 P/E would put the stock at $27. I have trouble selling at $15. |
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| Earnings Table | ||
 Body Central’s sales rose 20% 2QtrsAgo, but only 12% LastQtr. Same store sales fell 1%. Profit growth was only 6%. These numbers aren’t good.BODY met estimates, but these estimates had been lowered the prior two months. Annual Profit Estimates fell some, but not enough to justify the stock’s decline. Quarterly estimates need to stop falling. That’s step one to getting BODY stock back. As of now profit growth looks good after next quarter. |
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| Fair Value | ||
 BODY’s Fair Value P/E has dropped from 25 to 20 to 15 the past three quarters. This $15 stock is worth $20. |
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| Ten-Year Chart | ||
 Body Central was making headway in its ten-year chart, then got slammed back down. Note this stock has suffered a setback before, only to return to new-highs. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
16 of 17 |
Body Central is too low to sell. If I sell I bet the stock doubles by next year. I know this from experience. I used to make those mistakes all the time. Now, I’m sitting on these undervalued shares. I think BODY will get back to the mid-20s by next year. A 50%-100% move higher could be next. Body Central ranks 16th of 17 stocks in my Growth Portfolio Power Rankings and was thankfully sold from the Aggressive Growth Portfolio after I wrote my BODY research report last quarter. |
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Aggressive Growth Portfolio
N/A |
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