Cherokee, Inc. (NASDAQ:CHKE)

Top performing 1-yr industry here:
http://bigcharts.marketwatch.com/industry/bigcharts-com/default.asp?timeframe=OneYear
Dow Jones U.S. Clothing & Accessories Index
Close to bottom of Alpha-Weighted list here:
http://www.barchart.com/stocks/sectors/-TEAP?sym=CHKE
Rated 6 at Moneycentral

It is not really a business. It has basically one thing - a name, and it sells it.
Now - does the name Cherokee worth 115 Million Dollars ? Perhaps, but I just don't see it.

magic formula

This stock makes no sense. Drawn by the dividend and a simple business model that seemed impossible to fail, I used to own it in real life. A few years ago, though, I jumped ship when I noticed that the yearly dividends per share are always significantly more than the yearly earnings per sense. That's a huge red flag. I suspect that many investors are drawn to CHKE by the dividend as I was, but it is plainly unsubstainable, and as soon as the dividend gets cut again, it will disappear from investors' radar screens. It's also worrisome that they are so hugely dependent on a few contracts with retailers.

MF + 9% div yield

It's undervalued, and it pays a fantastic dividend of slightly under 5% (and this is a _cut_ dividend. What if it goes back up again... yum).

mfi

Back in to an old favorite on CAPS. I also own 400 shares in my real life. I love this company. No debt, great dividend, great revenue per employee, and they license low to mid tier brands at Target which caters to both cheap-chic and quality value shoppers. All they do is spin off money.

High return on capital, high earnings yield, and no obvious reason why the share value should be depressed.

Not sure if retails sales will recover. But it has a nice dividend to build up my cash.

A Magic Formula stock that also scores 8/12 in CAPSShot in MFPro.

Strong dividend, good P/E, looks like it has some room to regain value.

with a new idea or brand once in every 5yrs or so this company should be a maket beater. Get paid nicely to wait.

With a dividend and a stable P/E. We can keep this stock for a while.

Cherokee is either a real sleeper or nobody who is buying stocks believes the #'s. At today price of 17.85 thats a yeild of 11.2 % from a co that has no DEBT.they have no factories, no more employees than I have grandchildren, no no no to all the stuff that every body else has tons of. So the big guy likes to spend money, whats wrong with that, theres enough of it. Two years ago the bear pich was what happens when Target & others don't renew.I guess they did...well if they didn't CHKE would march a new guy in with a price that Target would pay and rock & roll. More royalties & fees and what ever.In the mean time they keep signing new clients. If only the CAPS members that rate this a positive would buy some it would be a $ 25.00 stock and still have lots and lots of legs.

While it is possible that earnings may increase as Walmart and Target see an increase in customers, I do not see earnings increasing enough for management to maintain it's current dividend.

Their payout ratio is considerably higher than 100% and at current levels they will exhaust all their available cash in the next 6 months unless the dividend is cut. With management as committed to the dividend as they are, I could see a 40% cut from $.50 per quarter to $.30 per quarter. If earnings hold as they are, a $.30 dividend is sustainable. They will not produce much in the way of free cash flow, but they will be able to pay out their dividend with some left over.

Once the dividend is cut, the price will drop, possibly as low as $12 or $13 - but probably not quite that far. At that point, I think Cherokee is a buy. However, not until the dividend cut, or a huge jump in earnings.

First of all, the fundamentals look nice. The company has a great business model with extremely low overhead, has good overseas exposure which will help margins with a deteriorating dollar. Low P/E and Price/Cash Flow. More importantly, the chart is a thing of beauty, past three days over 120k shares traded each day driving the stock up 7.5%, two of those three days had the highest trading volume since 2Q 2009. This recent surge just sent CHKE past its 50 day moving average, and I believe it has another 15-20% upward movement before reaching some resistance around the 22 mark.

Only enough cash in bank for 2 more dividend. They are going to have to cut the div. Then the stock will drop. Too bad. Good Company. Buy after the div cut cheaper than now.

Solid global company, still profitable during recession, high dividend payout vs price.