Zale Corp (ZLC)

TMFMattyA (97.36) Submitted: 2/13/07 10:23 AM : Start Price: $29.61 ZLC Score: 21.24

This company exhibits anemic growth rates, combined with a deteriorating balance sheet (higher debt and receivables and inventory levels that have outpaced sales growth); it operates in a brutally competitive market, mashed in the middle between high-end operators (Tiffany's) and low-end operators (Wal-Mart, Target), and the new wave of asset-light, low-working capital businesses such as successful Internet player Blue Nile; this company's stock can go anywhere, but it has little chance of outperforming the broader market over the long-term

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