| Stock (Symbol) | Stock Price | |
Francescas Holdings (FRAN) |
$32 |
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| Data is as of | Expected to Report | Sector |
September 15, 2012 |
Dec 3 |
Retail & Travel |
| Sharek’s Take | ||
 Note: the data and charts used in this Research Report are as of 9/15. Today is 11/14, and I will be purchasing FRAN today at $25.Francescas Holdings (FRAN) is one of the top retail stocks in America. I highlighted the company March 20th in Stock News, you can view the article here. Also see a more recent article from the Stock Research section here, where at the time I said I wanted to buy the $33 stock if it got to $25. The recent market weakness combined with store closings during Hurricane Sandy have pushed the stock to $25 and I’m purchasing FRAN today in the Growth Portfolio and Aggressive Growth Portfolio. |
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| One-Year Chart | ||
 FRAN was $33 when I did this chart in September. Look at profit growth from the last three quarters — profits doubled over that span. With the recent decline we are picking up FRAN around 25 times earnings — a great price for such a strong company. |
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| Earnings Table | ||
 Profits jumped 87% last quarter on a 49% rise in revenue. Same store sales rose a sizzling 21%.The company has beaten the street handily the last two quarters — but I wish to warn you FRAN could miss this quarter because up to 60 of 350+ “boutiques” may have been affected/closed by Hurricane Sandy. Annual Profit Estimates are increasing and management has been upping guidance. Profits look great the next two quarters and estimates are increasing. |
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| Fair Value | ||
 This $25 stock seems to be worth $40 this year and $48 next year. There’s huge upside here. |
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| Ten-Year Chart | ||
 FRAN just went public July of last year. The stock’s been volatile and that’s helped us get in on a dip today. Even with the volatility, the stock’s trended higher. Profits are set to grow 67% this year. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
4 of 15 |
Francescas Holdings is one of the top stocks in America, and I’m grateful to be able to get in on a correction. This stock has huge upside but there is risk the company could miss this quarter due to the hurricane. Even if that happens, I think investors will overlook “last quarter’s news”. FRAN enters as the 4th best stock in the 15 stock Growth Portfolio and 8 stock Aggressive Growth Portfolio Power Rankings. |
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Aggressive Growth Portfolio
4 of 8 |
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