The Bon-Ton Stores, Inc. (BONT)

xMacroeconomics (< 20) Submitted: 11/29/07 11:02 AM : Start Price: $11.28 BONT Score: 41.49

A pitch stolen from a friend:





The Bon-Ton carves out and maintains a niche in smaller secondary markets by


offering a higher proportion of better to moderate merchandise in an upscale


environment with superior customer service. Moderate-price competitors in these


markets generally offer a more limited selection of quality brands or do not


carry the same better brands as The Bon-Ton.





Two things are wrong here:


-secondary markets


-premium pricing





This company sounds ripe for a credit crunch hammer. If people get poorer, they are going to get poorer in the secondary markets first


which means the upscale stuff in those secondary markets will be what eats it first.





Also look at their website here http://www.bonton.com. Seeing 30%-50% off is a sign of desperation. That's something I see in retail stores right before they get boarded up.





And if you wanted a comfort blanket:





The department store operator reported a loss of $19.4 million, or $1.17 per share, compared with a loss of $10.9 million, or 66 cents per share, a year ago.





They have 1.27 b in debt. There is no such thing as a cheap company that is losing your money.

Report this Post Replies: 0 | Reply