Zale Corp (ZLC)

Tastylunch (95.91) Submitted: 3/24/08 2:29 AM : Start Price: $21.30 ZLC Score: 3.94

Zales has a triple whammy working against it , a bad economy lessening consumer wealth, a weak dollar raising merchandise cost (a good portion of jewelry is imported) and weakening consumer confidence. Furthermore younger more nimble less expensive online competitors like Blue Nile have given Zales a fight when they can afford it the least.

Sure they have authorized a massive buyback (300 million) that's driven the stock of late, but their business looks to have a rough year ahead of it. Until they actually figure out a regain business and the economy improves I want no part of Zales

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