Eddie Bauer Holdings, Inc. (EBHI)

fsc137 (86.78) Submitted: 6/01/07 10:25 AM : Start Price: $13.98 EBHI Score: -53.13

Eddie Bauer, the outlet for preppy and outdoor clothing, went bankrupt. They reorganized last year, with a highly-qualified new management team. That team, however, made a poor decision: to compete against the many outlet clothing stores that sell average-quality clothing cheaply. That effort was not successfull, and led to declining stock prices throughout 2006. Now, however, they are returning to the business for which Eddie Bauer is a well-known brand: high quality preppy and outdoor clothing at moderate prices. This should lead to a return in profitablility, and a stock target around $25.

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