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$42.00 -1.38 (-3.18%)
5/16/2008 4:00 PM

Guess?, Inc. (GES)

CAPS Rating:
***

The Company designs, markets, distributes and licenses lifestyle collections of contemporary apparel and accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities.

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Avatar msn005 (85.56) Submitted: 1/03/08 12:46 PM : Outperform Start Price: $35.98 GES Score: 18.45

I usually don't like companies that have more debt than cash reserves, but GES appears to be two good things: financing growth and using that growth to pay off the debt. GES is expanding in Europe, increasing the size of their stores (which is increasing the stores' profitability), developing brand concepts, and shifting to brands with higher profit marins. Not only is there room for growth and expansion, but that growth should only get more profitable over time, instead of hurting the profit margins. I wouldn't expect miracles over night, but over the next several years, GES should do well. And the fact that it's taken such a hit from it's 52 week high is an added bonus.

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