Zale Corp (NYSE:ZLC)

Törleß (65.42) Submitted: 6/2/2011 10:18:21 AM : Start Price: $6.35 ZLC Score: +41.47

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.