Kirkland's, Inc. (NASDAQ:KIRK)
The Company is a retailer of home decor in the United States with operating stores that present a selection of merchandise, including framed art, mirrors, wall decor, candles, lamps, decorative accessories and garden accessories.
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Recs
This is a regional home decor chain poised for growth outside of the southeast. Company boast a strong balance sheet with zero debt. They hold1/3 of their market cap in cash right now.
Recs
EV/EBITDA = 3.72, $4.50 net cash per share, revenue run rate has been increasing since year ending Jan 2009. PEG ratio of 1.01 (according to Yahoo! Finance).
Cons: Insider selling, 5.9% stock float is short.
MFI stats from MagicDiligence.com:
Results for ticker 'KIRK' (Kirkland's, Inc.):
Earnings Yield: 19.6%
MFI Return on Capital: 67.5%
MagicDiligence Research for 'KIRK':
Research Available for KIRK!
Instant Diligence:
The Earnings Yield of 19.6% is Very High.
The MFI Return on Capital of 67.5% is High.
Near-term Financial Health appears to be Excellent. The current ratio is 2.76.
Calculations:
(for quarter ended 2010-10-31)
Market Cap = Stock_Price * Shares
= 15.35 * 20.52
= 314.93
Excess Cash = Cash - MAX(0; (Current Liabilities - Current Assets + Cash))
= 58.83 - MAX(0; (47.55 - 131.35 + 58.83))
= 58.83
Enterprise Value = Market Cap + Total Debt - Excess Cash
= 314.93 + 0.00 - 58.83
= 256.10
MFI Invested Capital = Total Assets - Goodwill - Intangibles - Current Liabilities + Short Term Debt - Excess Cash
= 180.81 - 0.00 - 0.00 - 47.55 + 0.00 - 58.83
= 74.43
Earnings Yield = Operating Earnings / Enterprise Value
= 50.27 / 256.10
= 0.196 (19.6%)
MFI Return on Capital = Operating Earnings / MFI Invested Capital
= 50.27 / 74.43
= 0.675 (67.5%)
Recs
$20 to $30 eventually... Now is the time to invest in consumer discretionary stocks
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70,60,83
11,11,39
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Should return to $20 as wallets get fatter... maybe even $25+
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nice chart. breaking out of channel
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Another great store that is undervalued in my opinion.
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too much gain....550% in 9 months??!
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near 52 week high screen
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mmmmm....no.
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Overly inflated.
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You know really bites? I came across this stock many months ago when it was on the verge of bankruptcy. Why didn't I get in than? Duh...I don't know? Than again maybe I tried and fool.com didn't let me in at that time. Hhhmmm...
Recs
Special situation / turnaround. Please see my blog for updates.
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