Tillys (NYSE:TLYS)

CAPS Rating: 2 out of 5


Player Avatar timc1981 (99.06) Submitted: 6/14/2013 12:45:57 PM : Outperform Start Price: $15.99 TLYS Score: +2.77

I like Tilly's Price To Sales ratio. It's under 1. Combined with the PE ratio under 20, current ratio over 2, low debt levels, decent profit margin, and it's current place in 52 week price range, I think it's a good buy. One thing I'd take into consideration in real life with these fundamentals is that Tilly's market cap is low compared to other apparel companies (under $.5B), so its numbers should look more attractive than similar companies with a higher market cap.

From a technical perspective, it recently had a double bottom in January and April, and its price has been going up since April. It's price is about to cross its 50 day moving average. So, in real life, I don't think now is the *best* entry point, but given the quality fundamentals, I think one could make dumber decisions than TLYS in the $15-$16 range. It's got resistence in the high $17s - low $18s

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