Stock Of The Day 6/25 LTD - Limited Brands - Page 2

vulturesrow · #11 06-26-2005, 06:30 PM

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I didn't doubt your finacncial figures, just the numerator. I just thought that that was entirely too high of a quarterly turnover, but's it's still good.

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Well with a business like this inventory turnover is important and it would appear that their numbers are decent. I think most big firms are rating this stock as a hold but I am lukewarm about buying this stock.

alekhine8 · #12 06-26-2005, 06:53 PM

The good - they are trading at about 15 P/E and are paying out a 2.82% annual dividend yield at its current price.

Thats about it though. They aren't really expanding and their same store sales are pretty stagnant. And their first quarter this year pretty much sucked.

I would keep an eye on it only from a value investing perspective. If they fell to $19 or so because of some weak overall retail/apparel data or have another poor quarter or two, it would be worth buying.

James Boston · #13 06-26-2005, 07:13 PM

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I would keep an eye on it only from a value investing perspective. If they fell to $19 or so because of some weak overall retail/apparel data or have another poor quarter or two, it would be worth buying.

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That's where I see the money, and as I pointed out earlier, I doubt all their stores are performing on par with the company. I have no information on the performance of each different brand, but my guess is some are leagues away from the rest e.g. Victoria's Secret. Over time, I wouldn't be shocked to see them spin off the laggards as they did with Abercrombie. I think it's at a decent price, but no doubt at $19 it would be a great 10+ year investment.

vulturesrow · #14 06-26-2005, 07:50 PM

I definitely agree with this. When you think "lingerie", you think Victoria's Secret. Bath and Body Works probably has close to the same branding power. So this is definitely something in their favor. So I agree it might be a good value investment if it falls to about the price you said. But right now I just get a big meh feeling when I look at this stock. [img]/images/graemlins/smile.gif[/img]

adios · #15 06-27-2005, 10:32 AM

According to Yahoo, 26 analsysts have earnings estimates for the year and 18 have revenue estimates. As I've stated many times I have no believe that my knowledge would be better than the collective knowledge of this many analsysts. The chances that this stock is fairly priced to me are overwhelming which means that the chances that this security is undervalued are very underwhelming.