Zale Corp (NYSE:ZLC.DL)

CAPS Rating: No stars

The Company through its wholly owned subsidiaries, is a retailer of fine jewelry in North America.

Recs

4
Player Avatar Törleß (< 20) Submitted: 6/2/2011 10:18:21 AM : Underperform Start Price: $6.35 ZLC.DL Score: -185.06

Here's an inside perspective. As a former employee of Sterling I can tell you that Kay and JBR were used as a tag team to keep Zale underwater at comparative locations. On the surface the strategy doesn't seem like a good one (2 stores selling exactly the same merchandise at exactly the same price only a few hundred feet from one another), but it seems to have worked.As Zale continues to struggle Sterling is closing JBR locations nationwide. They no longer fear them as a competitor. This, in my opinion, is the worst form of a no confidence vote, when your competitors feel safe enough to wait for the bankruptcy because you are so deep in you can't get out.

Member Avatar terrificdeals2k8 (70.98) Submitted: 6/16/2011 1:27:47 AM
Recs: 0

Agreed!

Zale has no current profits (or expectations of any in the near future), no cash flow, and negative ROE/ROA/ROI. Insiders are selling out... The company is barely surviving in a competitive industry that requires consumers to have discretionary income, which is NIL for most Americans right now. Ultrashort

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