Coldwater Creek, Inc. (CWTR)

dflo (< 20) Submitted: 4/03/08 10:17 PM : Start Price: $5.43 CWTR Score: -25.63

With the continued slowdown in retail, a BV of 3.35, a forward PE of 33.88, a minus 14 cents in EPS this year and a measly 16 cents projected for next year, you would think that CWTR is teetering on the edge and ready to be put out of its misery. Indeed it might be. If retail clothing continues its decline, the company fails to guess which way the ever-changing tastes of the fickle middle-aged woman will move, or simply cannot develop a business model that takes advantage of this niche market, it will die a slow but sure death in Sandpoint, Idaho.

While there are worse places to die, what swings this to the buy column in my CAPS wish list is that 1) my wife buys their clothes, 2) it has more cash than it has debt, and biggest and best, 3) 22.2% of all shares are sold short. With only 90.8 million shares and a float of 56.88 million shares, only modest gains should result in a short squeeze that will put little old Sandpoint up there on the map with Boise and the financial hub of the west, good ole Salt Lake City.

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