Jo-Ann Stores, Inc. (JAS)

I like their chances at renegotiating leases and trimming costs - their July earnings report showed a much smaller loss than usual and I think that's why we've seen such a run since then. I don't see any reason why they can't sustain, or even improve, that trend.

Rated one star.

Its had a decent run with the bulls even with declining profit margins. it's about time for this stock to reverse course.

Overvalue at 25 x earnings

ROA and ROE are awful, both short term and long term. Sentiment is terrible. Minimal leverage means the short shouldn't smoke you, like a levered short can.

I stole this pick from GreatSatan. I think he made good pick at wrong time.

arts and crafts are vogue

This company has been making good improvements in it's stores, and with Walmart getting out of the fabric and notions business, along with the financial problems encountered by Hancock, it should be making some really strong gains.

Cons The company main products is fabrics. Fabrics are made out of oil (synthetics) or cottons and silks (naturals) both commodities that have experienced a substantial rise in prices. Sooner or later the increase in cost from the fabric manufacturers will catch up.

The price in commodities will also affect the transport. Must of the fabric and accessories come from China. Even though is purchased up to a year in advance the cost will be an issue as Jo-Ann may be locking up at higher prices in the future when a decline happens.

Add to that the store policy to remove the vending machines from the stores. Instead they are ordering soft drinks that they have for sale up front. The store should focus in the business they are and leave the soda selling to 7 Eleven.
Far more important. Employees have to be rang by a manager when purchasing an item. Making the line longer and taking manager attention from the primary job of helping the client.
On the subject of focus a board of director member Mr Rosskam that seems to be more concerned with selling his shares at every high does not help the company. It creates the impression that the insiders (Mr Rosskam family founded the company ) have no trust in the company future or certainly not the other fellow shareholders.

Pros: A rabid demographic. Their typical buyer loves the store. They will use every coupon they can (bringing value down)
However they are also a problem, I dont see the company creating a solid base of new customer.
I dont see teenagers with Ipods browsing the stores

Fabric , this is the place to get it in the USA. Where else are you going to make Mack? Your wife, mom , daughter and your gay uncle shop here.

The new store looks great.

I fear that sales will drop off considerably if they are unable to raise capital to redo stores. They have not aged well and will soon reach a point that they actually repel customers.

JAS is underrated, but a recovery will take time

Have you been in these stores? When I am, I always wonder how they stay in business - There certainly is a niche market for fabric, but the size and number of the stores are too many for such a small market. Plus look at the insiders dumping the stock like crazy over the past six months. Revenue, not surprisingly has been flat over the past three years. Maybe they can increase margins some, but the upside on this stock even given better margins seems small.

Jo-Ann stores, is a specialty retailer of crafts and fabrics, serving customers in their pursuit of apparel and craft sewing. Operating in a fragmented market with many fabric dealers, Jo-Ann is enjoying the tag of being the largest specialty retailer in the sector.

The company’s recent performance is little off the mark with its declined sales, but managed to get good gross margins. Its margins improved due to less promotional pricing strategy, better sell-through on seasonal goods, and reduced sales of clearance inventory. As against previous quarter company managed to keep fresh inventories in its stores and hopes for positive same store sales in the coming future. It is planning to open five 35,000-square-foot stores and one of the 25,000 store, to keep up with increasing number of footfalls. It is also under taking renovation project for 25 of its stores, since company’s sales are affected by season and changing fashion trends, a new look store should definitely give some push to its sales.

In the previous quarter company had announced its partnership with American greetings Corporation, which has an annual sales turnover of 41.8 billion. The company has already installed 29 stores of American greetings, and this store work will be done by April end. The effect of these new stores open can be seen in the second half of the year and will surely have a positive impact on the same store sales of the company. The company’s stock price hit its highest in march 2007 after the company declared its profit as compared to loss in its previous period. The stock has gained 15% year-to-date in 2007. Considering these on going improvements investors will see the stock perform in future.

One large competitor is going belly-up, leaving more market share for JAS!!!!!

Who the #$%# is buying this rubbish!

If their earning release really is worth the paper it is written on then there must be a lot of closet seamstresses and clothing designers out there. Even if they did have decent sales that will take a turn as the economy slows.

Keep sewing parachutes JAS you are gonna need them when you drop.

New management with a great ideal of what it takes to turn a company around.

Over-bought for the short term. Profit takers will swoop in over the next week.